Portfolio Guidelines

  • Typically 50–70 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 25% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 30%

Market Capitalization

The Fund typically invests at least 80% of its net assets in small and medium capitalization companies, defined as those companies with a market capitalization between $500 million and $10 billion (or, if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell 2500 Index) at the time of purchase.

Top Ten Equity Holdings
As Of March 31, 2017

Willis Towers Watson PLC
Cimarex Energy Co.
BankUnited, Inc.
Axalta Coating Systems Ltd.
Hub Group, Inc. (Cl A)
BorgWarner, Inc.
Cons. Discretionary
LifePoint Health, Inc.
Health Care
Post Holdings, Inc.
Consumer Staples
Boston Scientific Corp.
Health Care
UGI Corp.
Total As % Of Net Assets 28.1%

Sector Allocation1
As Of March 31, 2017

Small-Mid Cap Fund Russell 2500 Index
Financials 23.9% 17.1%
Cons. Discretionary 17.3 12.5
Consumer Staples 10.4 3.3
Industrials 10.2 15.7
Info. Technology 7.0 15.2
Health Care 6.9 11.5
Real Estate 6.1 9.8
Energy 3.2 4.4
Materials 2.9 6.2
Utilities 2.7 3.8
Telecom 0.0 0.6
Cash & Other 9.5 0.0

There are specialized risks associated with small capitalization issues, such as market illiquidity and greater market volatility, than large capitalization issues.

Fund holdings, sector allocations, and portfolio statistics subject to change without notice.

1 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds.

The Overall Morningstar Rating™ is based on 341 mid-cap value funds as of 3/31/17. The Fund’s Class I rating was 4 stars among 341, 4 stars among 301, and 5 stars among 212 mid-cap value funds for the 3-, 5-, and 10-year periods ended 3/31/17, respectively.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

2 Definitions: Active Share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference. Standard Deviation measures the volatility of the Fund’s returns. Beta measures the Fund’s sensitivity to market movements. Sharpe Ratio uses the Fund’s standard deviation and average excess return over the risk-free ratio to determine reward per unit of risk. Alpha measures excess return relative to the market that is attributable to active portfolio management. R-squared represents the percentage of the portfolio’s movements that can be explained by general market movements. Upside / Downside Capture Ratio measures a manager’s ability to generate excess return above the benchmark return in up markets and retain more of the excess return in down markets. Statistics for periods less than one year are not annualized.

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