Small Cap Value Fund Third Quarter 2017

We outperformed our index in the quarter led by stock selection in the Consumer Discretionary, Energy and Materials and Processing sectors. Optimism about tax reform pushed previously lagging small cap indexes to the lead in the quarter.  Small cap stocks pay a higher tax rate than large cap stocks on average and would be bigger beneficiaries of lower taxes. Sector performance was not a major factor in the quarter. Cheap valuations were a headwind for us in the quarter and the year to date. JP Morgan research recently said value spreads are near record levels.