Small Cap Value

Key Investment Tenets

Growth

Profitability

Franchise

Valuation

  • Strong competitive position in a stable, expanding industry

    Opportunity for an increase in revenue and earnings growth

  • Better relative earnings, free cash flow, and earnings growth

    Established profit margins

  • Management focused on core business and aligned with stakeholders’ interests

  • Prudent use of debt and leverage

  • Evaluate relative to history, peers, and economic conditions

Strategy Highlights

STYLE: Small Cap Value

INCEPTION: 11/1/2010

BENCHMARK: Russell 2000 Value Index

CONCENTRATED: Target Number of Holdings 70-120

DIVERSIFICATION TARGETS: 5% maximum individual security weight & 25% maximum exposure to a particular industry, in general

DIVERSIFICATION TARGETS: Sector and Industry neutral to the benchmark (+/- 5%) and looks to add value through bottom-up, fundamental security selection

LOW TURNOVER: 15 to 60% annually

FULLY INVESTED: Average cash allocation of 1 to 5%

Investment Policy Committee

Jeffrey Kerrigan, CFA Committee Chair

E. Martine Elie, CFA

John Beaver, CFA

Bob Schrock, CFA

Investing involves risk. Principal loss is possible. Before investing, consider the investment objectives, risks, charges and expenses.