Portfolio Guidelines

  • Typically 40–60 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 30% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 30%

Market Capitalization

The portfolio typically invests at least 80% of its net assets in medium market capitalization
companies, defined as those companies with a market capitalization between $1.5 billion and
$20 billion (or, if greater, the maximum market capitalization of companies generally within
the capitalization range of the Russell Midcap Index) at the time of purchase.

Top Ten Equity Holdings
As Of March 31, 2017

Willis Towers Watson PLC Financials 4.1%
Loews Corp. Financials 3.8
Axalta Coating Systems Ltd. Materials 3.1
Cimarex Energy Co. Energy 3.1
LifePoint Health, Inc. Health Care 3.0
BankUnited, Inc. Financials 3.0
Boston Scientific Corp. Health Care 2.8
Whirlpool Corp. Cons. Discretionary 2.8
BorgWarner, Inc. Cons. Discretionary 2.8
Post Holdings, Inc. Consumer Staples 2.7
Total As % Of Net Assets 31.2%
Total Number Of Equity Holdings 58

This is presented as supplemental information.

Sector Allocation1
As Of March 31, 2017

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Financials 26.6% 13.2% 19.6%
Cons. Discretionary 19.4 15.1 8.6
Industrials 9.9 13.8 13.0
Consumer Staples 9.6 5.0 3.3
Info. Technology 6.2 15.3 9.5
Health Care 5.9 9.3 4.1
Real Estate 4.1 10.0 13.8
Materials 3.9 5.7 6.1
Energy 3.1 5.9 9.6
Utilities 1.8 6.2 11.2
Telecom 0.0 0.7 1.2
Cash & Other 9.5 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2
As Of March 31, 2017

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Median Forward P/E 15.7x 19.7x 18.8x
Median Trailing P/E 21.6x 23.2x 21.5x
Weighted Average Dividend Yield 1.1% 1.6% 2.1%
Median Price / Book 2.4x 2.8x 2.2x
Median Price / Sales 1.8x 2.2x 2.1x
Median Market Cap. $8.0B $6.8B $6.4B
Weighted Average Market Cap. $11.1B $13.9B $13.7B
Portfolio Turnover 5 Year 13% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 94% / 92% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 94% / 84% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 93% / 89% —   —  

This is presented as supplemental information.

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

2 Source: FactSet.

3 Source: Morningstar Direct. Active share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference.

4 The Russell Midcap Index is the core benchmark.

The Russell Midcap Value Index is the value benchmark.

Source: eVestment Analytics based on quarterly returns (gross of fees) from 1/1/14 – 3/31/17.

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