Pioneer38%

Core Growth38%

Special Situation

23%

Cash1%

4.1

18.5

29.6

10.7

-3.9-2.7

18.1

3.1

-10

-5

0

5

10

15

20

25

30

35

2Q2012 1-Year 3-Year Since Inception

(Aug 2007)

Granahan Investment Management, Inc.

Small Cap Focused Growth Product June 30, 2012

At a Glance Product Assets ($000): $505

Minimum Investment ($000): $3,000

Status: Open

Inception Date: August 1, 2007

Benchmark: Russell 2000 Growth

Capitalization: Typically, $200 Mil - $2 Bil at purchase

Portfolio Manager: Andrew L. Beja, CFA

Typical Number of Holdings: 30-40

Distinguishing Factors

• Experienced portfolio manager with a demonstrated

record of success.

• Seeks capital appreciation through investment in a

limited number of sustainable growth companies

using a strict risk/reward discipline.

• Research centered on the manager’s areas of

expertise.

Investment Philosophy

Granahan Investment Management (GIM) believes that

small dynamic companies provide the greatest potential

for superior long-term performance. Granahan Focused

Growth product invests using a bottom up approach to

researching companies and a strict risk/reward discipline

for selecting stocks and managing the portfolio. The net

result is a portfolio of 30-40 attractively priced stocks of

some of the most exciting and innovative companies in

the economy.

Investment research for the product concentrates on

areas of the portfolio manager’s core competency,

including technology services, internet, consumer, and

business services. The Focused Growth investable

universe is approximately 100 companies that enjoy

large, open-ended opportunities, sound business

models based on sustainable competitive advantages,

strong financials, and superior management teams.

Company analysis is combined with a rigorous ongoing

valuation and portfolio construction discipline centered

on expected return and risk/reward. The net result is a

portfolio that has generated consistent, strong risk-

adjusted returns over time.

Firm History

Founded in 1985, Granahan Investment Management,

Inc. is a 100% employee-owned firm specializing in

smaller cap equity investments for large institutions and

wealthy individuals. The firm utilizes fundamental,

bottom-up research to uncover and invest in fast

growing companies under $6 billion in market cap. The

firm has grown to nearly $3 billion in assets under

management representing several large institutional

clients. The three founding principals have consistently

added to the investment team which now totals eleven

professionals.

LifeCycle Diversification: Adds Stability

Annualized Performance Small Cap Focused Growth Russell 2000 Growth

Small Cap Focused Growth

Net of Fees

June 30, 2012

Selected Portfolio Statistics Trailing 3-years through 6/30/2012

Quarterly Returns - Gross of Fees

Annualized Alpha 12.87%

Upside Capture 117.44%

Downside Capture 57.51%

Tracking Error 6.43

Information Ratio 1.99

Source: Informais

Graphs and Statistics are Supplemental Information.

Please reference fully compliant GIPS Presentation on reverse side.

Composite Footnotes Granahan Investment Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS

standards. Granahan Investment Management has been independently verified for the periods January 1, 1993 through March 31, 2011. Verification assesses whether (1) the firm has

complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present

performance in compliance with the GIPS standards. GIM is an independent, SEC- registered investment firm that oversees small and mid-cap equity portfolios for large institutions and

wealthy individuals. The Small Cap Focused Growth product utilizes fundamental, bottom-up research and analysis to invest in companies in the small cap sector of the market that exhibit

sustainable high earnings growth, with a focus on the technology services, internet, consumer, and business services sectors. The benchmark for the Small Cap Focused Growth product is

the Russell 2000 Growth. The composite, created in December 2011, is calculated by asset-weighting the performance of each account on a monthly basis. The composite includes returns

from the portfolio manager’s prior firm, from inception of August 1, 2007 through December 30, 2011. Accounts are included beginning with the first full month under management and

terminated accounts are included in the composite. Performance calculations, expressed in U.S. dollars, produce a total return including cash and the reinvestment of dividends and interest.

The dispersion is a standard deviation using equal-weighted total returns for accounts in the composite the entire year. The three-year annualized standard deviation measures the variability of

the composite and the benchmark returns over the preceding 36-month period. Leverage is not utilized. Policies for valuing portfolios, calculating performance, and preparing compliant

presentations are available upon request.. Returns are gross of investment management fees, which when included, reduce investment returns. Net of Fees returns are calculated by applying

the fee schedule below to all accounts in the composite. The fee for accounts managed in the Small Cap Focused Growth style is payable quarterly in arrears and is calculated by applying the

following ANNUAL percentages to the average value of the assets in an account on the last day of each month in the quarter: First $15 million 1.00%, next $35 million 0.80%, next $50 million

0.60%, above $100 million 0.73%. Fees are collected quarterly, which produces a compounding effect on the total rate of return net of management fees. Market value is based on trade date

and security pricing is supplied by Telemet. A complete list and description of all of the firm's composites is available upon request. Past performance is no guarantee of future results.

Granahan Focused Growth Composite June 30, 2012

Granahan Investment Management, Inc.

Specialists in Small Cap Equity Management

275 Wyman St., Suite 270, Waltham MA 02451 781-890-4412 www.granahan.com info@granahan.com

June 30, 2012 Small Cap

Focused Growth

Russell 2000

Growth

Median Market Cap 0.92 bil 0.58 bil

Weighted Avg. Market Cap 1.73 bil 1.35 bil

Est. 3-5 Year EPS Growth 20.3% 16.2%

Forward P/E Ratio 28.0X 17.6X

Dividend Yield 0.13% 0.82%

Long Term Debt to Capital 8.3% 25.1%

Average Price/Book 3.39 3.21

Source: FactSet

Top Ten Holdings

June 30, 2012

Name

%

LivePerson, Inc. 6.2

ATMI Inc. 6.2

Affiliated Managers Group 5.7

InnerWorkings Inc. 5.6

Caribou Coffee Co. 5.4

Aspen Technology 5.3

SciQuest Inc. 4.9

Dick’s Sporting Goods 4.8

Concur Technologies 4.7

Monotype Imaging Holdings 4.6

Date

GIMI

Firm

Assets

Small Cap Focused Growth Composite

Russell 2000

Growth Index

$ Mil

$ Mil

# Accts

Gross Return

Net

Return

3-Yr.

Std. Dev.

Composite

Dispersion

Non-Fee

Assets

Return

3-Yr.

Std. Dev.

YTD2012 $2,792.8 $0.5 <5 20.65% 20.09% 21.74 NA 100% 8.81% 21.90

2011 $2,741.5 $0.4 <5 13.19% 12.07% 23.18 NA 100% -2.91% 24.31

2010 $5.4 8 30.06% 28.81% 29.56 0.15 7% 29.08% 27.70

2009 $4.2 8 53.80% 52.33% NA 0.06 10% 34.47% 24.85

2008 $1.9 6 -46.34% -46.91% NA NA 10% -38.54% 21.26

2007* $.4 <5 18.24% 17.76% NA NA 100% 3.28% 14.23

NA – Dispersion information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year; Standard deviation

information has fewer than three years’ data. *Partial year performance: August 1, 2007 through 12/31/2007

Holdings and Characteristics are Supplemental Information.

Please reference fully compliant GIPS Presentation above.