• Conservative growth investor
• Bottom-up fundamental approach to investing
• Long-term investment horizon - not a momentum player
• Extremely focused on style consistency
• Disciplined application of investment philosophy

Investment Process
Beginning with a universe of approximately 2,800 small and mid cap companies having a market capitalization between $300 million and $6 billion, RBC selects those profitable, high-quality, small and mid cap growth companies selling at reasonable valuations that are likely to outperform the market over the long-term. We take a bottom-up fundamental approach to investing and have a long-term investment horizon.

The portfolio of small and mid cap growth stocks consists of high-quality, profitable, financially sound growth companies that generally display the following characteristics at the time of purchase:

• 12-20% + long-term revenue and earnings growth
• Consistency of financial results
• High sales and earnings growth rates, margins and return on equity relative to industry peers
• Reasonable price to earnings and price to sales ratios
• High quality of earnings
• Unique market niche

The portfolio is well diversified, holding 70-90 names and is designed to have broad industry and sector exposure, with no large sector bets versus the Russell 2500 Growth Index. Maximum exposure to any one company will be 2.5% at cost and 4.0% at market.