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investment-team

GIPS Compliant Presentation

Equity Composite

January 1, 2007 to December 31, 2016

 
Year End Total Firm Assets (mil) Composite Assets Annual Performance Results % Composite 3 - Year St. Dev. Benchmark 3 – Year St. Dev.
USD (mil) % of Total Assets No. of Accounts Composite Gross Composite Net (c) RMDIV (a) Dispersion
2016 479 452 94.3 32 16.7 16.0 20.0 0.3 11.4 11.3
2015 418 390 93.3 31 (0.1) (0.7) (4.8) 0.1 10.4 10.7
2014 447 417 93.2 30 8.7 8.0 14.8 0.1 9.5 9.8
2013 408 377 92.4 30 29.3 28.6 33.5 0.3 12.3 13.7
2012 343 319 93.0 30 8.3 7.7 18.5 0.1 14.1 16.7
2011 340 301 88.5 28 5.4 4.8 (1.4) 0.2 17.9 22.8
2010 379 351 92.6 27 23.6 23.0 24.8 0.2    
2009 308 284 92.2 27 23.8 23.2 34.2 0.2    
2008 (b) 222 199 89.7 25 (17.3) (17.9) (38.4) 0.3    
2007 (b) 259 233 90.0 23 8.6 8.0 (1.4) 0.3    
 
a) Unaudited information. The Russell Mid Cap® Value Index return is not reduced by any transaction costs or advisory fees and is a total return for the index, including the reinvestment of dividends.
b) These results were verified by other independent accountants.
c) Net performance has not been examined for the periods ending December 31, 2004 through December 31, 2010.
          See accompanying disclosures.
 
Disclosures:

1.    Speece Thorson Capital Group, Inc. (“Speece Thorson”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards.

2.    Speece Thorson has been independently verified for the years ending December 31, 2007 through December 31, 2016. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.  Verification does not ensure the accuracy of any specific composite presentation.  The verification and performance examination reports are available upon request.

3.     Speece Thorson is defined as an institutional investment management firm specializing in mid to small cap value equity account management. Speece Thorson is an SEC registered investment adviser under the Investment Advisers Act of 1940 and is unaffiliated with any organization.

4.     The Speece Thorson Capital Group Equity Composite (“Composite”) was created on March 1, 1992 and is asset-weighted.  Valuations are computed and performance is reported in U.S. dollars. Valuations are based on the fair value of the account at the composite level using objective, observable, unadjusted quoted market price for an identical investment in an active market on the measurement date obtained from a qualified independent third party. The Composite includes all fee-paying, fully discretionary equity accounts and the equity portion of qualifying balanced accounts.  They are included in the Composite from the month following completion of initial funding to the month prior to termination. The minimum amount for inclusion is $1.5 million or greater.  There are no known material differences in exchange rates or valuation sources used among the portfolios within the composite and between the composite and the benchmark.

5.  Performance results are presented by gross-of-fees and net-of-fees. Returns reflect the reinvestment of dividends and interest. Net-of-fees returns for the period ending December 31, 2007 through December 31, 2010 have not been examined. Gross-of-fees returns are reduced by any trading expenses incurred during the period. Net-of-fees returns are gross-of-fees returns reduced by the weighted average of actual investment management fees. The fee schedule is 0.7% on the first $10 million of assets, 0.5% on the next $20 million, 0.3% on the next $20 million and 0.2% on assets over $50 million. The Speece Thorson Capital Group Value Fund is in the composite and its fee schedule is 1.0%. The fee schedule is also described in detail in Form ADV Part 2 and in the investment management agreement. Actual fees may vary, depending on the applicable fee schedule and portfolio size. Composite dispersion is measured using an asset-weighted standard deviation of annual returns of those portfolios that are included in the composite for the whole year.

6.    The benchmark used is the Russell Mid Cap® Value Index. The Russell Mid Cap Value Index measures the performance of the mid-cap value segment of the U.S. equity universe.  It includes those Russell Mid Cap Index companies with lower price-to-book ratios and lower forecasted growth values.  The Russell Mid Cap Value Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap value market. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap value market. Benchmark returns are total returns per the benchmark source and are used for comparative purposes only and are not intended to directly parallel the risk of investment style of the accounts included in the Composite.  The index is fully invested and includes the reinvestment income.  The returns for the index do not include any trading, management fees or other costs.  Benchmark returns are not covered by the report of the independent verifiers.

7.    Performance examinations of the Composite for the eight-year period ended December 31, 2016 were performed by Baker Tilly Virchow Krause, LLP. Firm-wide verification and performance examinations for the years ended December 31, 2007 and December 31, 2008 were performed by other independent accountants. To receive a complete list and description of Speece Thorson’s composites or copies of the examination reports, contact Judy Haeg or Beth Hickey at 612-338-4649. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.

8.     Past performance is not an indicator of future results.