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 portfolio typically invests in small- and mid-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 Financials 4.5%
Cimarex Energy Co. Energy 3.2
Axalta Coating Systems Ltd. Materials 2.9
BankUnited, Inc. Financials 2.9
Hub Group, Inc. (Cl A) Industrials 2.6
BorgWarner, Inc. Cons. Discretionary 2.5
LifePoint Health, Inc. Health Care 2.5
Post Holdings, Inc. Consumer Staples 2.4
Boston Scientific Corp. Health Care 2.4
UGI Corp. Utilities 2.2
Total As % Of Net Assets 28.1%
Total Number Of Equity Holdings 57

This is presented as supplemental information.

Sector Allocation1
As Of March 31, 2017

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Financials 24.0% 17.1% 26.9%
Cons. Discretionary 17.2 12.5 8.8
Consumer Staples 10.4 3.3 2.7
Industrials 10.2 15.7 13.2
Info. Technology 7.0 15.2 9.4
Health Care 6.9 11.5 4.5
Real Estate 6.1 9.8 13.9
Energy 3.2 4.4 7.4
Materials 2.9 6.2 5.7
Utilities 2.7 3.8 6.8
Telcom 0.0 0.6 0.5
Cash & Other 9.5 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2
As Of March 31, 2017

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Median Forward P/E 16.7x 19.6x 18.9x
Median Trailing P/E 22.5x 22.7x 21.2x
Weighted Average Dividend Yield 1.1% 1.4% 1.9%
Median Price / Book 2.2x 2.2x 1.8x
Median Price / Sales 1.8x 2.1x 1.8x
Median Market Cap. $5.7B $1.1B $1.0B
Weighted Average Market Cap. $8.1B $4.6B $4.4B
Portfolio Turnover 5 Year 21% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 96% / 94% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 99% / 85% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 99% / 81% —   —  

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 2500 Index is the core benchmark.

The Russell 2500 Value Index is the value benchmark.

6 Source: eVestment Analytics based on quarterly returns (gross of fees) from 1/1/06 – 3/31/17.

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