The investment objective of the Phocas Small Cap Value Fund (the "Fund") is long-term investment returns from capital appreciation. Under normal market conditions, the Fund seeks to achieve its objective by investing at least 80% of its assets in Small Cap Value stocks.

Small Cap stocks are generally the stocks of companies that have total market capitalization up to around $2 billion based on the current range of market capitalizations of all U.S. stocks. Value stocks are those stocks whose share prices are, or appear to be, undervalued relative to their values implied by their business fundamentals. Phocas measures these valuations using various traditional valuation metrics like price-to-earnings and price-to-book ratios as well as other valuation models. Recently, the average and median market capitalizations of the stocks in the Fund were some $700 million and $1 billion, respectively.

We believe successful Small Cap Value investing requires extensive knowledge of Small Cap Value company management teams, investor expectations, effective deployment of capital, and a thorough knowledge and understanding of the world of equity investing.

Phocas Financial's team of investment professionals has an average of over 16 years experience each analyzing value equities. We believe we have the knowledge, experience and tools necessary to build and manage a diversified Small Cap Value fund that has the potential to deliver long-term value with moderate risk.