Strategy. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of small-cap foreign companies. This investment policy may be changed by the Fund upon 60 days prior written notice to shareholders. The Fund expects, under normal market conditions, to invest in at least three different countries. The equity securities in which the Fund invests are generally common stocks traded on foreign exchanges, although it may also purchase American Depositary Receipts (ADRs), which are traded on U.S. exchanges and markets and represent an ownership interest in a foreign security. The Fund generally considers small-cap foreign companies to be those with market capitalizations not greater than either that of the … Show more… Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of small-cap foreign companies. This investment policy may be changed by the Fund upon 60 days prior written notice to shareholders. The Fund expects, under normal market conditions, to invest in at least three different countries. The equity securities in which the Fund invests are generally common stocks traded on foreign exchanges, although it may also purchase American Depositary Receipts (ADRs), which are traded on U.S. exchanges and markets and represent an ownership interest in a foreign security. The Fund generally considers small-cap foreign companies to be those with market capitalizations not greater than either that of the largest company in the MSCI EAFE Small Cap Index ($8.77 billion as of December 31, 2022) or $5 billion, whichever is greater at the time of initial purchase. The Fund may consider a company to be a foreign company if: (i) 50% of the companys assets are located outside of the United States; or (ii) 50% of the companys revenues are generated outside of the United States; or (iii) the company is domiciled or doing a substantial amount of business outside of the United States. The majority of these companies operate in established markets; however, the Fund may invest up to 15% of its assets in securities of companies in emerging market countries. An emerging market country is any country determined by the Adviser to have an emerging market economy, considering factors such as the countrys credit rating, its political and economic stability and the development of its financial and capital markets. Typically, emerging market countries are in the process of industrializing, with lower gross national products than more developed countries. In some circumstances, the Fund may purchase ADRs, rather than foreign shares that are traded on foreign exchanges, because the ADRs have greater liquidity or for other reasons. From time to time, the Fund may also focus its investments in a particular geographic region, such as Europe or Asia. In selecting investments for the Fund, the Adviser uses a fundamental, relative value investment approach to build a diversified portfolio of companies. Companies entering the portfolio generally need to satisfy Cambiars criteria on four levels: quality, valuation, value creation/catalyst, and risk-reward criteria: Quality Cambiars analysts seek companies that are best-of-breed operators within their industries. Eligible businesses for the portfolio are evaluated based on the following characteristics: ? Management Management teams should have a track record of success that has benefitted not just public shareholders such as the Fund, but a wide range of stakeholders, e.g. , employees, customers, suppliers. ? Consistent margins Companies with above average and consistent margins suggest a relatively high value-add product or service and defensible market position. ? Return on invested capital (ROIC) Demonstrates a pattern of value creation and capital discipline. ? Low leverage Companies with strong balance sheets do not need to depend on the vagaries of the debt and/or equity markets to sustain their businesses. ? Free cash flow (FCF) We view FCF to be a better measure of economic value creation versus alternative metrics such as earnings before interest, taxes, depreciation, and amortization (EBITDA) or earnings per share (EPS) because Cambiar believes that FCF is less subject to manipulation. Valuation Cambiar evaluates broadly accepted and recognized financial measures in gauging valuation. An underlying premise of the Cambiar philosophy is that certain industries tend to follow certain valuation ranges; the market does not randomly value stocks. Our preference is to invest in companies that are trading at a reasonable valuation relative to their historical trading range. The Cambiar team will use a variety of metrics in gauging valuation; examples include Price/Earnings, Price/Book Value and FCF Yield. Value Creation/Catalyst Cambiars research process also seeks to identify some form of fundamental positive development(s) that we believe the market is overlooking/underappreciating. Such catalysts may come in varying forms examples include new product introductions, managerial changes, divestiture of an underperforming division, or simply better financial performance. Valuation, in and of itself, is not a catalyst there must be some identifiable event that we believe will cause investors to positively reassess the business. Risk-Reward Criteria The final criteria is the investment teams assessment of the issuers upside potential: companies entering the portfolio should possess an attractive total return potential that includes both price appreciation and dividends (if applicable) over a forward 1- to 2-year timeframe. While Cambiar may not achieve this return target over the desired timeframe or at all the return requirement is intended to channel research efforts toward those situations that appear to offer the most compelling risk/return tradeoffs. The Adviser constructs the Funds portfolio on a security-by-security basis, with the goal of building a portfolio that strikes a balance between the Advisers conviction in an investment and portfolio diversification. The Adviser seeks to manage the Funds risk through its research process as well as limits on individual position sizes and allocations to an economic sector or individual country. The Adviser will consider liquidating or reducing its investment in a company if: (a) the investment thesis is realized and the stock reaches its price target, (b) the stock price increases disproportionately relative to actual company developments, (c) position size, country or sector limits are reached, or (d) there is a negative change in fundamentals, or the investment thesis fails to develop as expected. The Adviser will not sell a stock simply because of a decline in price, and may add to the position if the investment thesis remains intact. Show less