Wellington Managemen

Chief Executive Officer, Perry Traquina

Wellington Management's mission as a firm is simple: to exceed the investment objectives and service expectations of our clients around the world. Our entire organization is focused on helping us fulfill this commitment.

Our ownership structure as a private partnership aligns our interests more closely with those of our clients and helps us attract and retain world!class talent. Our business model" centered exclusively on asset management" ensures everything we do is aimed at exceeding our clients' expectations. Our investment platform combines broad central resources including proprietary research with independent investment teams" and leverages a wide range of disciplines" s#ills" and technologies. Our global relationship management teams provide worldwide presence" as well as local #nowledge and experience. Our strong culture promotes excellence in all we do and sets the highest personal and professional standards in order to continue to earn the confidence of our clients.

History Wellington Management traces its roots bac# to $%&' when Walter Morgan" a (hiladelphia!based accountant" established the first balanced mutual fund in the )nited *tates. +espite the great mar#et crash of $%&%" Mr. Morgan established Wellington Management as an innovator and leader in investment management. ,n the $%-.s" four talented investment professionals too# on leadership roles at the firm: W. /icholas 0horndi#e" 1obert +oran" *tephen (aine" and 2eorge 3ewis. 0ogether" they refocused the business and" in $%4%" &% original partners bought bac# the firm believing the private form of ownership to be in the best interests of clients. 0his move was" at the time" both unusual and bold. 0he firm opened its 3ondon office in $%'5 and then began expanding internationally at an energetic pace in the mid!$%%.s: opening in *ingapore in $%%-" 0o#yo and *ydney in $%%4" 6ong 7ong in &..5" and 8eijing in &..4. ,n &.$$" the 9ran#furt" 2ermany" office of our 3ondon!based affiliate" Wellington Management ,nternational 3td" opened. 0oday" Wellington Management has a significant presence and long!term trac# record in nearly all sectors of the li:uid" global securities mar#ets. *till" our history is perhaps best defined not by the number of years we've been in existence" but rather by the stability and growth that have driven our success.

Worldwide Locations United States 6undreds of )* institutional investors large and small" public and private" corporate and nonprofit have entrusted us with assets to manage. We have over $"-.. employees based in our five )* offices:

8oston" Massachusetts our head:uarters" where the majority of our investment and business personnel are based Marlborough" Massachusetts in suburban 8oston" where many information systems experts and client administration professionals are located 1adnor" (ennsylvania near our historical home of (hiladelphia and current home to several e:uity teams ;hicago" ,llinois home to regional business development and consultant relations teams *an 9rancisco" ;alifornia serving clients in the region and home to our West ;oast business development and consultant relations teams

ei!ing Wellington 2lobal ,nvestment Management 3td 8eijing 1epresentative Office Wellington Management established a representative office in 8eijing in &..4. ;hief 1epresentative: <aping *hi "ran#furt Wellington Management ,nternational 3td 0he 9ran#furt" 2ermany" office of our 3ondon!based affiliate" Wellington Management ,nternational 3td" opened in &.$$. Managing +irector: Mar# =ordy $ong %ong Wellington 2lobal ,nvestment Management 3td 6ong 7ong office Wellington Management>s 6ong 7ong office opened in &..5 and has over -. experienced professional staff representing a broad range of functions" including investment management and research" global relationship management" product management and legal. Managing +irector: 1ay 6elfer Singa&ore Wellington ,nternational Management ;ompany (te 3td *ingapore office Wellington Management>s *ingapore office was opened in $%%- and today serves as a solutions provider for institutional and subadvisory clients throughout *outheast ?sia and *outh 7orea. Managing +irector: ;harles ?rgyle

'ondon Wellington Management ,nternational 3td Our office in 3ondon opened in $%'5. 0oday" we have over $%. staff members" representing more than a dozen nationalities and spea#ing a wide range of languages. Managing +irector: Mar# =ordy Sydney Wellington ,nternational Management ;ompany (te 3td *ydney office Wellington Management established its *ydney office in $%%4. Managing +irector: ?isling 9reiheit To#yo Wellington ,nternational Management ;ompany (te 3td Our 0o#yo office opened in $%%4. 0oday" we have close to 4. staff members representing a broad range of functions" including client relationship management" portfolio management" research" product management" business development" compliance" client administration" and others. Managing +irector: Masa#azu /iwa Our Single "ocus (s (nvestment Management Wellington Management focuses on doing one thing well: We manage assets for institutions located around the world. We are not lenders or underwriters. Our expertise is investment management" and we focus our full resources on meeting the needs of our clients. Independent, Proprietary Research We are #nown for the depth and breadth of our research. Our analysts focus on uncovering differentiated" moneyma#ing ideas for our clients by ta#ing varied analytical approaches or by being early to anticipate changes in companies" securities" sectors" and investor opinions. Many of our analysts have made research a career path" and many also manage portfolios in their areas of expertise. Portfolio Management Our clients' assets are managed by highly experienced professionals who focus on specific investment approaches" each with a well!articulated investment philosophy and process. 0ogether" these approaches span the global e:uity" fixed income" currency" and commodity mar#ets" including multi!strategy" specialty" and alternative investment approaches. ;ollaboration among individuals and teams is a hallmar# of our organization and helps us to ma#e even better informed investment decisions.

(ortfolios are managed in a number of ways: by individual portfolio managers or teams of managers@ by a group of research analysts@ or by a combination of these structures. We do not have a chief investment officer. ,nstead" our firm is organized as a collection of teams each functioning as an entrepreneurial entity within an established organization that provides it with global research" investment and business resources" and stability. Clients World)ide
o o o o o o

(ensions +efined ;ontribution (lan *ponsors Andowments and 9oundations 9und *ponsors and +istributors ,nsurance Antities *overeign and Official ,nstitutions

Wellington Management oversees investments for more than &"$.. institutional clients in some B. countries. ,t has approximately C4-. billion of assets under management. ;lients include central ban#s" corporations" retirement plans" endowments" foundations" insurance companies" and investment funds. ,ts investment minimum is CB million. Most assets under management are invested in stoc#s and bonds" but alternative investments are also offered. 0he company boasts about a dozen offices in the )*" Aurope" ?sia" and ?ustralia. 9ounded in $%&'" Wellington Management is owned by its limited partners. ?ccording to Wellington" as of &.$. the firm has Dapproximately )*CB%' billion in client assets under managementD and Dserves as an investment advisor to more than $"'B. institutions located in over B. countries.D /early 5.E of that total is represented by mutual funds that it manages for Fanguard" one of its largest clients and one with whom it has a longstanding historical connection. *anguard funds managed +y Wellington ?s of /ov. &.$." Wellington manages $% funds for Fanguard!!fifteen mutual funds and four Fanguard Fariable ?nnuity subaccounts Mutual funds

Fanguard ;apital Falue 9und GF;F3HI Fanguard +ividend 2rowth 9und GF+,2HI Fanguard Anergy 9und GF2A/HI Fanguard A:uity ,ncome 9und GFA,(HI Fanguard Axplorer 9und GFAH(HI Fanguard 2/M? 9und GF9,,HI Fanguard 6ealth ;are 9und GF26;HI Fanguard 6igh!<ield ;orporate 9und GFWA6HI Fanguard ,nternational Axplorer 9und GF,/AHI Fanguard 3ong!0erm ,nvestment!2rade 9und GFWA*HI Fanguard Morgan 2rowth 9und GFM12HI Fanguard ).*. 2rowth 9und GFW)*HI

Fanguard Wellesley ,ncome 9und GFW,/HI Fanguard Wellington 9und GFWA3HI Fanguard Windsor 9und GFW/+H

Wellington also manages four subaccounts in the Fanguard Fariable ?nnuity!!listed here as named by a Fanguard spo#esperson:

Fanguard Fariable ,nsurance 9und ! 8alanced (ortfolio Gannuity version of Wellington 9undI Fanguard Fariable ,nsurance 9und ! A:uity ,ncome (ortfolio Gannuity version of A:uity ,ncome 9undI Fanguard Fariable ,nsurance 9und ! 2rowth (ortfolio Gannuity version of ).*. 2rowth 9undI Fanguard Fariable ,nsurance 9und ! 6igh <ield 8ond (ortfolio Gannuity version of 6igh <ield 8ond (ortfolioI

,ov- ./, .010 document request +y "ederal investigators ?ccording to a /ovember &5" &.$. 8loomberg article" Wellington is one of several firms that have received document re:uests in connection with federal investigations of possible insider trading by hedge funds. 0he article says D/o allegation of wrongdoing has been made against... *?;" which manages C$& billion" or =anus and WellingtonD and that DWellington said on an internal conference call yesterday that it>s conducting a review of records" and that it didn>t engage in illegal trading"D 0he article cited Fanguard spo#esperson 3inda Wolohan as saying that Wellington serves as an adviser to $% Fanguard funds with about C$4B billion in assets" and that JFanguard has a longstanding relationship with Wellington and remains fully confident in and committed to that relationship and the investment! advisory services provided by the firm on behalf of our client.D On /ov. &%th" in an email in response to a :uery from /isiprius" Wolohan stated: Wellington" along with a number of other investment management firms" has received a re:uest for information from government officials with respect to trading activity. 0o be clear" this reported re:uest for information and documents should not be construed as implying wrongdoing by Wellington. 9or example" such re:uests can sometimes be rather broad and sweeping in their nature" directed to industry participants as a way to gather information regarding industry practices and behavior. Whatever turns out to be the case in this instance" you should #now that any re:uest for information that may be directed to Wellington would have no direct impact on shareholder assets or the value of Fanguard mutual funds managed by Wellington. 0he performance of the funds is driven largely by the financial mar#ets and the specific holdings of particular funds. Fanguard maintains a comprehensive and rigorous oversight process of our external advisors" which are subject to several levels of controls and regulation to protect the interests of Fanguard fund shareholders. ?s such" Fanguard remains fully confident in Wellington and the investment advisory services provided by the firm to our clients. We will continue to monitor the situation and report to shareholders on any future developments.

(nvestment firm2s secrets sli& out 9ebruary $$" &.$$ ,f it hadn>t been for a strange turn of events at the state>s highest court" sensitive details about the vast wealth of secretive 8oston investment firm Wellington Management ;o. might have never seen the light of day. 8ut for about three hours yesterday" information about the Wellington partnership was posted online" cited in a court decision in a long!running divorce case between well!#nown hedge fund manager /icholas ?dams and his wife" /ancy. 0he lengthy written decision from the *upreme =udicial ;ourt incorporated many well!guarded financial facts about the company that manages more than C-.. billion. ?mong the revelations: One estimate put the business>s worth at C% billion. ?nd some of the $.. or so partnerships in the firm may be worth more than C'. million each. 0hen" without explanation" the high court withdrew its decision and pulled the document off the ,nternet. 0he court doc#et indicates the case files have been impounded. 6owever" a half!hour video of lawyers ?lan +ershowitz and =oel 7ozol arguing for their respective clients before the *=; remained available online" providing still more bits of information. +ershowitz was representing /icholas ?dams in his appeal of a probate court assessment that he said valued /ancy ?dams>s share of the marital estate at about C$&. million. Matthew 7ozol" a lawyer for the money manager>s wife" called that one of the largest divorce court decisions ever in Massachusetts. 0he C% billion estimate of Wellington>s worth came from an expert wor#ing for /ancy ?dams. 8y comparison" privately owned giant 9idelity ,nvestments is thought to be worth between C5. billion and CK. billion. Wellington has grown dramatically while trying not to draw attention to itself over the past decade" often managing billions for better!#nown companies such as Fanguard 2roup and 0he 6artford 9inancial *ervices 2roup. Overall" it acts as financial adviser to $"%.. institutional clients in B. countries. ,nvestment firms tend to shun the limelight" but Wellington is in an entirely different league. 0he old!line firm" founded in $%&'" doesn>t hold public events and never comments for stories about its business. ,t doesn>t publish annual reports or disclose partnership profits. (redictably" a spo#eswoman declined to comment about the information on Wellington contained in the ?dams court case. 0he ?dams court papers go into detail about how Wellington pays its partners" both while at the firm and for as long as a decade after they leave. *ome compensation is based on measurable investment performance" but millions in pay also depends on the subjective views of a three!member panel of partners. ,t decides how big a slice of Wellington>s profit each partner has earned in a given year. ?n independent special master appointed by the probate court" retired judge 1udolph 7ass" had appraised /icholas ?dams>s partnership interest at C'$ million" although the court said it wanted that figure recalculated.

?dams" who managed more than C& billion in hedge funds and other investments for Wellington at the time of the divorce filing" earned more than CK- million in &..'" based on his investment results from the previous year. ,t appeared to be the most ?dams had earned since becoming a Wellington partner in $%%5. 3i#e other partners" a relatively small amount of ?dams>s total compensation is from his base pay just C5.."... in &..'. 6edge fund mangers also earn a percentage of the fees Wellington charges investors. ,n his case" that incentive compensation ranged from CKB"&-& in &... to more than C&. million in &..'. 0his compensation can vary a great deal from year to year because it is based on the actual performance of Wellington investments. 6edge fund managers can earn millions or nothing in a given year. ?dams also earned more money as a partner in two ways" based on the firm>s overall profits. 0he most important thing to #now is that each partner is allocated a share of those profits based on a series of intangibles: +id the partner offer the firm valuable adviceL ,s he or she a big star who attracts business to WellingtonL ?dams received an average of about 5 percent of Wellington profits during his years as a partner" according to the high court>s withdrawn decision. ,n $%%5" his share amounted to C$5B"K.5. 8y &..' it had grown to more than C&- million. 0he millions made by Wellington>s partners certainly sound shoc#ing" but they amount to relatively small change compared to the billions earned by some of the hedge fund industry>s highest fliers. Wellington>s compensation almost seems conservative by the gaudiest Wall *treet standards. /onetheless those numbers are the last facts Wellington would ever want you to learn.