Performance Summary

Annualized Total Returns - period ending as of 6/30/2016

Domestic Equity 2Q161 YTD 1 Year 3 Year 5 Year 10 Year
Core Equity
Gross2 1.53% -0.21% -1.19% 10.33% 10.92% 8.56%
Net2 1.35% -0.56% -1.88% 9.63% 10.23% 7.90%
S&P 500 Index3 2.46% 3.84% 3.99% 11.66% 12.10% 7.42%
Large Cap Growth
Gross2 -0.32% -3.60% -1.70% 13.46% 11.91% 8.62%
Net2 -0.47% -3.89% -2.29% 12.78% 11.24% 7.97%
Russell 1000 Growth Index4 0.61% 1.36% 3.02% 13.07% 12.35% 8.78%
Large Cap Value
Gross2 1.07% -1.23% -4.32% 7.52% 9.56% 7.08%
Net2 0.90% -1.57% -4.98% 6.84% 8.88% 6.43%
Russell 1000 Value Index4 4.58% 6.30% 2.86% 9.87% 11.35% 6.13%
Mid Cap Growth
Gross2 3.07% 2.73% -5.93% 8.20% 8.05% 9.77%
Net2 2.86% 2.29% -6.73% 7.28% 7.13% 8.84%
Russell Midcap Growth Index4 1.56% 2.15% -2.14% 10.52% 9.98% 8.12%
Small Cap Growth
Gross2 7.73% 10.92% -1.14% 11.29% 10.39% 9.82%
Net2 7.50% 10.45% -1.98% 10.35% 9.45% 8.89%
Russell 2000 Growth Index4 3.24% -1.59% -10.75% 7.74% 8.51% 7.14%
Domestic Fixed Income 2Q161 YTD 1 Year 3 Year 5 Year 10 Year
Core Fixed Income
Gross2 2.80% 6.32% 7.17% 3.84% 3.65% 5.28%
Net2 2.66% 6.04% 6.61% 3.45% 3.29% 4.95%
Barclays U.S. Aggregate Bond Index3 2.21% 5.31% 6.00% 4.06% 3.76% 5.13%
Core Intermediate Fixed Income
Gross2 1.24% 3.59% 4.33% 2.74% 2.72% 4.62%
Net2 1.15% 3.41% 3.97% 2.38% 2.36% 4.26%
Barclays U.S. Intermediate
Govt/Credit Bond Index3
1.59% 4.07% 4.33% 2.95% 2.90% 4.48%

Past performance is no guarantee of future results. Returns may be impacted by ongoing market volatility. Please inquire for more current performance information.

For purposes of compliance with the Global Investment Performance Standards ("GIPS®"), the Company has defined the firm as all portfolios managed by Waddell & Reed Investment Management Company (WRIMCO) and Ivy Investment Management Company (IICO), excluding portfolios owned by Waddell & Reed Financial, Inc. and its subsidiaries.

Effective July 1, 2015 the firm includes all portfolios managed by WRIMCO and IICO. Prior to July 1, 2015 the firm included all institutional separate accounts managed by WRIMCO and IICO.

To receive a complete list and description of WRIMCO and IICO composites, contact us by email at institutional@waddell.com. For a presentation that adheres to the GIPS® standards, contact us at institutional@waddell.com or refer to the Related Material of a selected institutional strategy.

Waddell & Reed Investment Management Company claims compliance with the Global Investment Performance Standards ("GIPS®").

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Composite descriptions are included in each strategy’s related materials, which can be found by clicking on the respective strategy in the Performance Summary table

1 Actual return from April 1, 2016 through June 30, 2016.

2 Composite returns are measured in U.S. dollars. Returns reflect the reinvestment of all dividends and other earnings. Portfolio returns are net of all foreign reclaimable and nonreclaimable withholding taxes, if applicable. Withholding taxes are recognized on an accrual basis or cash basis depending on client and/or account type. Additional information regarding treatment of withholding taxes is available upon request. Returns shown gross of fees reflect the deduction of commissions paid, but are gross of all other expenses. Net-of-fees returns are calculated by deducting the highest applicable advisory fee from the monthly gross composite return. The actual fees paid by a client may vary based on assets under management and other factors.

A client’s return will be reduced by investment management fees and other expenses incurred in the management of a client’s account. Investment advisory fees are described in Part 2 of the ADV. Investment returns and the actual value of each client account will fluctuate, and at any given time an account could be worth more or less than the amount invested. The benchmark selected for the composite is intended to provide a method to compare the composite’s performance to an index including securities that are generally similar to those that are included in the composite. However, composite holdings (and, accordingly, risk and volatility) may differ significantly from the securities tracked by their benchmarks.

3 Benchmark returns have been taken from published sources.

4 Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a presentation of WRIMCO. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in WRIMCO's presentation thereof.