Investment Objective and Strategy

Kalmar's small company investment approach is available to investors of all sizes through the Kalmar "Growth-with-Value" Small Cap Fund (KGSCX). The Fund invests in companies which the adviser believes have the potential for significant business growth and capital appreciation, yet whose stocks, at the time of purchase, are trading at undervalued prices in the public trading markets. The adviser believes that its investment philosphy of purchasing promising, growing companies that may also be undervalued can result in both lower risk and higher return when compared to many other small company investment strategies.

Risk Considerations

The Fund primarily invests in growth stocks with the potential for significant growth and may be more volatile because they are more sensitive to market conditions. The Fund may seek to buy these stocks at undervalued prices and this involves the risk that the securities may remain undervalued for an extended period of time and may not realize its full potential. Investments in small cap securities may involve greater risks due to higher volatility and less liquidity than larger more established companies.

Three Distinguishing Characteristics

Literature Center

Factsheet
Manager Perspective
Portfolio Holdings
Prospectus
 Application
SAI

Shareholder Reports

 Annual Report
 Semi-Annual Report

Manager Continuity

With the same management team in place since its inception in 1997, the Kalmar "Growth-with-Value" Fund adheres to a consistent investment approach and process. Co-portfolio managers Ford B. Draper, Jr., and Dana Walker, CFA, have over 73 years combined experience in identifying high quality, smaller growth companies.

Investment Focus: Ford has conducted research on a very broad range of business models covering most sectors in the economy. Nevertheless, he has done relatively less research on financial services and retailing companies.

After Yale University and an MBA degree in Finance from Columbia University Graduate School of Business, Mr. Draper began his career in the investment research and capital management departments of Smith, Barney & Co., a major New York investment firm. In 1970, he joined Baker, Fentress & Company, a $350 million publicly-owned closed-end mutual fund, performing original investment research on a broad spectrum of companies and industries. For the following twelve years at Baker, Fentress, he had responsibilities as Vice President that included trading, investment research, investment strategy, and management of the Fund's portfolio. Mr. Draper founded Kalmar Investments in 1982.

Investment Focus: Retail, health care, manufacturing and materials with special knowledge of filtration, distribution based businesses, certain areas of business services.

After the University of Virginia's McIntire School of Commerce, Mr. Walker worked over three years for Delfi Management, Inc., investment advisor to the $350 million mutual fund group Sigma Funds. As a Senior Research Analyst, he performed original research in consumer-related industries, healthcare, retailing and distribution and was responsible for investment selection from these areas for the Sigma Funds and the portfolios of DP Asset Management, an affiliated $100 million investment advisory firm. Mr. Walker joined Kalmar Investments in 1986.