Security selection focuses on companies with improving growth prospects and earnings trends as well as reasonable valuation given the economic cycle. Target market capitalization between $500 million and $5 billion with a minimum and maximum of $100 million and $5 billion, respectively. Returns and standard deviation reflect a well diversified portfolio of 75-95 names that results from our top-down sector/industry allocation process.

We utilize several procedures to control risk in our Small Cap Equity portfolio. On an individual stock level, we have a maximum position limit of 3%, ensuring proper diversification across different securities. For the portfolio, we impose a maximum/minimum sector overweight/underweight of +/- 1000 basis points versus the benchmark sector weight, with an overall maximum sector exposure of 30%. Our investment policies and procedures also call for a review of securities by Investment Committee that have underperformed to the benchmark on a rolling three-month basis.

Asset Class: Small Cap Equity
Investment Style: Core-Growth
Primary Benchmark: Russell 2000
Secondary Benchmark: Russell 2000 Growth
Inception Date: December 31, 2011
Average Number of Positions: 70 - 90
Max Position Size: 3%
Weighted Average Market Cap: $2.862 billion
Sector Constraint: +/- 1000 basis points vs. benchmark (30%)
Target Annual Turnover: 60 - 80%
Data Provided as of: September 30, 2018