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DePrince, Race & Zollo, Inc. Mandate: Micro Cap Value Hired: 2011

Firm Information Investment Approach Total ARMB Mandate

DePrince, Race & Zollo, Inc. is a 100% employee owned company that was founded in 1995. The firm, based in Winter Park, Florida currently employs 43 professionals. As of 12/31/2016, the firm’s total assets under management were $5.5 billion. Key Executives: Victor A. Zollo, Jr. Founding Partner & Co-Chief Executive Officer Gregory T. Ramsby Managing Partner, Portfolio Manager Kelly W. Carbone Managing Partner, Director of Marketing

DePrince, Race & Zollo, Inc. (DRZ) believes undervalued stocks with an above average yield and a fundamental catalyst provide the opportunity for superior long-term total returns. DRZ seeks to own undervalued stocks with a minimum 1% dividend yield and a fundamental catalyst to obtain superior long-term total returns. Bottom-up stock selection is the key component to performance. Research moves up from company to industry and economy, to a confirmation of improving fundamental prospects. DRZ moves funds into new stocks which have better risk/reward prospects. Benchmark: Russell Micro Cap Value Index

Assets Under Management: 12/31/2016: $103 Million

Concerns: None

12/31/2016 Performance

Last Quarter 1-Year 3-Years

Annualized 5-Years

Annualized DRZ Micro Cap Value 20.84% 46.47% 9.39% 14.49% Russell Micro Cap Value Index 16.32% 30.59% 8.01% 16.92%

Alaska Retirement Management Board

March 2, 2017

Kelly W. Carbone – Managing Partner Gregory T. Ramsby – Managing Partner

Randy A. Renfrow, CFA – Partner

DePrince, Race & Zollo, Inc. 250 Park Avenue South • Suite #250 • Winter Park, FL 32789

(407) 420-9903

Firm Overview

2

Founded in 1995 100% Employee Owned

29 Investment Professionals 14 Administrative Staff

Serving 72 Clients Small, focused firm with goal to provide superior

performance and service to the institutional marketplace

Total Firm Assets: $5.6 Billion as of 12/31/16 Value Investment Strategies:

U.S. Large-Cap: $2.8 Billion U.S. Small-Cap: $1.8 Billion U.S. Micro-Cap: $461 Million U.S. SMID-Cap: $106 Million Non U.S.

International: $173 Million International Small-Cap: $29 Million Emerging Markets: $92 Million

Global: $73 Million

DePrince, Race & Zollo – U.S. Micro-Cap Value

Value Philosophy

DePrince, Race & Zollo – U.S. Micro-Cap Value 3

Undervalued stocks with a minimum 1% dividend yield and a fundamental catalyst provide the opportunity for superior long-term total returns.

Bottom-up stock selection is the key component of performance.

Research moves up from company to industry and economy, to confirm improving fundamental prospects.

Funds are moved into new stocks which have better risk/reward prospects.

Three Equally Balanced Factors

BUY DECISION SELL DECISION

● Minimum 1% Dividend Yield

● Low Relative Valuation

● Fundamental Catalyst

● Yield Declines

● Relative Price Target Reached

● Fundamentals Not Performing as Expected

970.12%

441.81%

544.93%

372.25%

0%

200%

400%

600%

800%

1000%

We believe:

The Difference Dividends Make Cumulative performance since inception of the indexes, 05/31/1993–12/31/2016

Russell 2000 Value Total Return

Russell 2000 Value Price Appreciation

(Excluding Dividends)

Russell 2000 Growth Price Appreciation

(Excluding Dividends)

Russell 2000 Growth Total Return

Source: Russell Investments Co.

Dividend yield provides a meaningful portion of the

market’s return Dividend yield offers concrete evidence of real earnings

Provides the most reliable valuation measure The return of cash to shareholders in the form of

dividends encourages capital allocation discipline

Yield Investing


Performance Report


Alaska Retirement Management Board December 31, 2016

See Attached Disclosure

Annualized* Alaska Retirement Russell Microcap Value

Russell2000 Value

Quarter 20.84% 16.32% 14.07%One Year 46.47% 30.59% 31.74%

Three Years* 9.39% 8.01% 8.31%Five Years* 14.49% 16.92% 15.07%

Inception to Date*(04/30/11-12/31/16) 10.64% 11.40% 10.48%

Interest and Dividends

Market Value on 12/31/15

Market Value on 12/31/162,129,296

$102,903,103

ContributionsWithdrawals

$70,403,682 0

(205,454)30,575,579 Gain (Loss)

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

Quarter

One Year

Three Years*

Five Years*

Inception to Date*(04/30/11-12/31/16)

Alaska Retirement Russell Micro Cap Value Russell 2000 Value

Investment Performance

DePrince, Race & Zollo – U.S. Micro-Cap Value 6 See attached disclosure

December 31, 2016

*The Russell Micro Cap Value Index inception June 2006

11.36 11.14

8.58

13.49 14.61

9.58

46.43

8.63 9.22

5.26

14.08

16.92

8.01

30.59

6.26

13.14

15.07

8.31

31.74

0

5

10

15

20

25

30

35

40

45

50

Inception to Date(09/30/97-12/31/16)

Annualized

Fifteen YearsEnded 12/31/16

Annualized

Ten YearsEnded 12/31/16

Annualized

Seven YearsEnded 12/31/16

Annualized

Five YearsEnded 12/31/16

Annualized

Three YearsEnded 12/31/16

Annualized

One YearEnded 12/31/16

DRZ Russell Micro Cap Value Russell 2000 Value

Calendar Year Performance


*The Russell Micro Cap Value Index inception June 2006

46.43

-9.65

-0.55

30.78

14.88

-4.43

28.34

34.19

-27.77

-3.07

29.77

1.87

28.08

34.21

-5.80

26.17

26.21

10.44

-9.18

30.59

-6.45

3.15

41.17

22.81

-10.33

28.35

17.50

-34.92

-13.13

21.80

4.70

22.25

46.03

-11.43

14.02

22.83

-1.49

-6.45

31.74

-7.47

4.22

34.52

18.05

-5.50

24.50

20.58

-28.93

-9.77

23.48

-60 -40 -20 0 20 40 60

Year 2016

Year 2015

Year 2014

Year 2013

Year 2012

Year 2011

Year 2010

Year 2009

Year 2008

Year 2007

Year 2006

Year 2005

Year 2004

Year 2003

Year 2002

Year 2001

Year 2000

Year 1999

Year 1998

DRZ Russell Micro Cap Value Russell 2000 Value

Equity Characteristics


December 31, 2016


2.3

1.7

1.5

1.5

1.9

1.6

Yield

P/B

17.4

18.2

18.2

597.1

533.1

2,002.6

ForwardP/E

Market Cap$Million

Alaska Retirement Russell Micro Cap Value Russell 2000 Value


Representative Holdings


December 31, 2016


Sector %Portfolio Yield

Alon U.S.A. Energy Inc. Energy 2.7 5.3

Park Sterling Corp. Financials 2.4 1.5

United Financial Bancorp Inc. Financials 2.4 2.6

CatchMark Timber Trust Inc. Real Estate 2.4 4.8

Aceto Corp. Health Care 2.3 1.2

TriCo Bancshares Financials 2.2 1.8

Cohu Inc. Information Technology 2.2 1.7

Calgon Carbon Corp. Materials 2.2 1.2

Southwest Bancorp Inc. Financials 2.1 1.1

Kforce Inc. Industrials 2.1 2.1



DePrince, Race & Zollo – U.S. Micro-Cap Value See Attached Disclosure

10

TriCo Bancshares, TCBK

Overview:

TriCo Bancshares is a bank holding company with $4 Billion in assets operating 70 branches throughout Northern and Central California. The bank offers financial services and provides a diversified line of products and services to both consumers and businesses.

Dividend Yield: 1.80% Market Capitalization: $770 Million Relative Valuation:

We value TCBK on a relative P/B range of 0.60 – 1.00 vs. the S&P 600. We determine the range by linking our historical valuation analysis with our fundamental research. The stock is a candidate for purchase when the expected upside versus downside is two to one. We purchased TCBK when it was trading at the lower end of its relative P/B range.

Fundamental Catalysts:

TCBK is using excess capital to grow loans and return capital to shareholders through dividends and potential share repurchases.

The company is leveraging new investments in technology to drive the efficiency ratio lower.

Loan demand continues to improve, and the company has a strong pipeline. We expect TCBK

to generate strong loan growth in 2017.

Cash and securities represent 33% of assets. As excess cash is deployed into higher yielding loans, we expect profitability to improve.


DePrince, Race & Zollo – U.S. Micro-Cap Value See Attached Disclosure

11

Kforce Inc., KFRC

Overview:

Kforce is a U.S. centric, full service staffing firm providing flexible and permanent staffing solutions. The company specializes in project based activities within the technology, financial, and health care industries.

Dividend Yield: 2.10% Market Capitalization: $630 Million Relative Valuation:

We value KFRC on a relative P/E range of 0.55 – 1.00 vs. the S&P 600. We determine the range by linking our historical valuation analysis with our fundamental research. The stock is a candidate for purchase when the expected upside versus downside is two to one. We purchased KFRC when it was trading at the lower end of its relative P/E range.

Fundamental Catalysts:

Veterans Affairs Next Generation: The VA awarded KFCR prime contractor status on the VA T4NG contract, a multi-year, multi-vendor award totaling $22 Billion.

We expect significant consultant hiring in 2015 and 2016 to drive revenue growth and margin

expansion going forward.

Financial Services: We believe the company’s large exposure to financial service firms will be beneficial in light of the more favorable interest rate and regulatory environment we foresee in 2017 and 2018.

Sector Allocation


December 31, 2016

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Alaska Retirement Russell Micro Cap Value


DePrince, Race & Zollo, Inc.PORTFOLIO APPRAISAL

State of Alaska - Micro capAY4E

December 31, 2016

Unit Total Market Pct. Cur.Quantity Security Cost Cost Price Value Assets Yield

Cash & EquivalentsShort Term Investment Fund 4,831,304 4,831,304 4.7 1.0

4,831,304 4,831,304 4.7 1.0

U.S. Common Stock

Energy24,812 ADAMS RES &

ENERGY INC COM NEW

42.34 1,050,488 39.65 983,796 1.0 2.2

240,217 ALON USA ENERGY INC COM

6.95 1,669,362 11.38 2,733,669 2.7 5.3

46,915 DELEK US HLDGS INC

15.31 718,432 24.07 1,129,244 1.1 2.5

3,438,283 4,846,709 4.7 4.0

Materials130,832 CALGON CARBON

CORP COM14.39 1,883,238 17.00 2,224,144 2.2 1.2

26,162 HAWKINS INC COM 39.67 1,037,959 53.95 1,411,440 1.4 1.620,671 HAYNES

INTERNATL INC COM NEW

44.70 923,996 42.99 888,646 0.9 2.0

39,052 KRONOS WORLDWIDE INC COM

5.66 221,023 11.94 466,281 0.5 5.0

37,827 SCHULMAN A INC 25.07 948,162 33.45 1,265,313 1.2 2.5107,131 SYNALLOY CP DEL

COM12.92 1,384,257 10.95 1,173,084 1.1 2.7

6,398,635 7,428,909 7.2 2.1

Industrials38,794 AAR CORP 22.54 874,553 33.05 1,282,142 1.2 0.939,383 DMC GLOBAL INC 12.41 488,675 15.85 624,221 0.6 0.565,932 GRAHAM CORP COM 21.31 1,405,008 22.15 1,460,394 1.4 1.662,756 H&E EQUIPMENT 16.18 1,015,396 23.25 1,459,077 1.4 4.739,751 HURCO COMPANIES

INC COM29.23 1,161,961 33.10 1,315,758 1.3 1.1

93,631 KFORCE INC COM 18.23 1,707,232 23.10 2,162,876 2.1 2.194,057 KIMBALL INTL INC

CL B11.35 1,067,672 17.56 1,651,641 1.6 1.4

118,782 LSI INDS INC 9.66 1,147,079 9.74 1,156,937 1.1 2.1187,620 LUXFER HLDGS PLC

SPONSORED ADR10.86 2,038,312 10.89 2,043,182 2.0 4.6

45,872 MCGRATH RENTCORP COM

28.81 1,321,759 39.19 1,797,724 1.7 2.6

37,842 MTS SYS CORP COM 44.12 1,669,688 56.70 2,145,641 2.1 2.156,877 PRIMORIS SVCS

CORP COM17.21 978,981 22.78 1,295,658 1.3 1.0

80,990 RESOURCES CONNECTION I COM

14.79 1,198,163 19.25 1,559,058 1.5 2.3

28,062 SUN HYDRAULICS CORP COM

29.69 833,045 39.97 1,121,638 1.1 0.9

16,907,524 21,075,945 20.5 2.2

13



December 31, 2016


Consumer Discretionary112,190 CLUBCORP HLDGS

INC COM13.05 1,464,061 14.35 1,609,927 1.6 3.6

195,308 ENTRAVISION COMMUNICAT CL A

7.16 1,398,072 7.00 1,367,156 1.3 1.8

84,313 FINISH LINE INC CL A

19.74 1,664,175 18.81 1,585,928 1.5 2.3

92,879 LIBBEY INC COM 17.68 1,642,072 19.46 1,807,425 1.8 2.413,647 OXFORD INDS INC

COM60.10 820,208 60.13 820,594 0.8 1.8

27,588 WEYCO GROUP INC COM

24.52 676,560 31.30 863,504 0.8 2.7

7,665,148 8,054,534 7.8 2.5

Consumer Staples18,757 ANDERSONS INC 30.98 581,092 44.70 838,438 0.8 1.415,618 LIMONEIRA CO COM 13.61 212,506 21.51 335,943 0.3 0.7

7,633 VILLAGE SUPER MKT INC CL A NEW

24.89 190,007 30.90 235,860 0.2 3.2

983,605 1,410,241 1.4 1.6

Health Care107,385 ACETO CORP 21.30 2,287,258 21.97 2,359,248 2.3 1.2

2,287,258 2,359,248 2.3 1.2

Financials41,572 BALDWIN & LYONS

INC CL B25.14 1,045,130 25.20 1,047,614 1.0 4.1

37,000 BANC CALIF INC COM

13.00 480,889 17.35 641,950 0.6 3.0

126,081 BANKFINANCIAL CORP COM

12.24 1,543,856 14.82 1,868,520 1.8 1.6

44,937 BROOKLINE BANCORP INC COM

9.71 436,539 16.40 736,967 0.7 2.2

47,942 BRYN MAWR BK CORP COM

27.96 1,340,240 42.15 2,020,755 2.0 2.0

6,057 CAPITAL CITY BK GROUP COM

19.87 120,334 20.48 124,047 0.1 1.0

17,723 CODORUS VY BANCORP INC COM

18.94 335,602 28.60 506,878 0.5 1.9

59,695 DONEGAL GROUP INC CL A

13.84 826,087 17.48 1,043,469 1.0 3.2

44,593 EAGLE BANCORP MONT INC COM

10.94 487,698 21.10 940,912 0.9 1.5

25,501 EASTERN VA BANKSHS INC COM

8.21 209,340 10.45 266,485 0.3 1.1

27,379 ENTERPRISE FINL SVCS COM

20.11 550,708 43.00 1,177,297 1.1 1.0

12,402 FIRST BANCORP INC ME COM

16.27 201,836 33.10 410,506 0.4 2.8

115,171 HOPFED BANCORP INC COM

12.06 1,389,042 13.46 1,550,202 1.5 1.2

15,882 HORIZON BANCORP IND COM

16.38 260,103 28.00 444,696 0.4 1.6

75,279 INDEPENDENT BANK CORP

12.43 936,055 21.70 1,633,554 1.6 1.8

14



December 31, 2016


759 INFINITY PPTY & CAS CP COM

75.69 57,450 87.90 66,716 0.1 2.4

9,285 MIDDLEBURG FINANCIAL COM

17.60 163,407 34.75 322,654 0.3 1.5

116,863 MIDSOUTH BANCORP INC COM

13.48 1,575,702 13.60 1,589,337 1.5 2.6

10,229 NATIONAL BK HLDGS CORP CL A

19.00 194,330 31.89 326,203 0.3 0.9

916 OLD POINT FINL CORP COM

23.54 21,561 25.00 22,900 0.0 1.6

56,199 ORRSTOWN FINL SVCS INC COM

22.19 1,246,865 22.40 1,258,858 1.2 1.8

78,308 PACIFIC CONTINENTAL COM

10.42 816,339 21.85 1,711,030 1.7 2.0

231,124 PARK STERLING CORP COM

6.66 1,540,091 10.79 2,493,828 2.4 1.5

53,448 PEOPLES BANCORP INC COM

21.33 1,139,919 32.46 1,734,922 1.7 2.5

133,292 PZENA INVT MGMT INC CLASS A

7.24 965,299 11.11 1,480,874 1.4 1.1

213,406 RIVERVIEW BANCORP INC COM

5.96 1,272,418 7.00 1,493,842 1.5 1.1

61,356 SI FINL GROUP INC MD COM

11.52 706,805 15.40 944,882 0.9 1.3

75,199 SOUTHWEST BANCORP INC COM

16.58 1,246,994 29.00 2,180,771 2.1 1.1

38,217 STONECASTLE FINL CORP COM

22.90 875,337 18.69 714,276 0.7 7.9

66,824 TRICO BANCSHARES COM

21.79 1,456,328 34.18 2,284,044 2.2 1.8

172,064 UNITED CMNTY FINL CORP COM

5.79 995,905 8.94 1,538,252 1.5 1.3

135,993 UNITED FINL BANCORP COM

11.91 1,619,274 18.16 2,469,633 2.4 2.6

34,099 UNIVEST CORP PA COM

19.38 660,878 30.90 1,053,659 1.0 2.6

53,679 WESTERN NEW ENG BANCOR COM

8.00 429,438 9.35 501,899 0.5 1.3

20,292 WESTWOOD HLDGS GROUP COM

52.73 1,070,016 59.99 1,217,317 1.2 4.1

28,217,819 39,819,750 38.7 2.0

Information Technology54,646 ADTRAN INC 18.07 987,520 22.35 1,221,338 1.2 1.690,095 BROOKS

AUTOMATION INC COM

11.17 1,006,050 17.07 1,537,922 1.5 2.3

160,463 COHU INC 11.00 1,764,958 13.90 2,230,436 2.2 1.773,014 COMMUNICATIONS

SYS INC COM10.32 753,840 4.63 338,055 0.3 3.5

120,328 TESSCO TECHNOLOGIES IN COM

18.54 2,231,450 13.00 1,564,264 1.5 6.2

6,743,819 6,892,014 6.7 2.9

15



December 31, 2016


Utilities6,869 ARTESIAN RES

CORP CL A22.33 153,377 31.94 219,396 0.2 2.9

153,377 219,396 0.2 2.9

Real Estate65,142 ARMADA HOFFLER

PPTYS I10.50 683,772 14.57 949,119 0.9 4.9

217,916 CATCHMARK TIMBER TR IN CL A

12.36 2,694,007 11.26 2,453,734 2.4 4.8

184,564 CEDAR REALTY TRUST INC COM

7.54 1,391,120 6.53 1,205,203 1.2 3.1

61,486 NATIONAL STORAGE AFFIL COM SHS BEN IN

19.42 1,193,971 22.07 1,356,996 1.3 4.3

5,962,870 5,965,052 5.8 4.4

U.S. Common Stock Total 78,758,337 98,071,799 95.3 2.4

TOTAL PORTFOLIO 83,589,641 102,903,103 100.0 2.3

16

DePrince, Race & Zollo, Inc. MICRO CAP VALUE COMPOSITE

September 30, 1997 through December 31, 2016

Year Gross

Return(%) Net

Return(%) Index

Return(%)

Composite 3- Year

Annualized Standard Deviation

Index 3- Year

Annualized Standard Deviation

Number of Portfolios

Composite Dispersion(%)

Total Composite

Assets ($millions)

Percentage of Firm Assets

2016 46.43 45.02 30.59 15.84% 15.95% 7 0.07 461 8.29% 2015 (9.65) (10.55) (6.45) 13.29% 13.56% 7 0.01 317 5.49% 2014 (0.55) (1.78) 3.15 13.57% 13.41% 11 0.06 451 5.72% 2013 30.78 29.19 41.17 15.52% 16.46% 13 0.06 586 6.88% 2012 14.89 13.48 22.81 19.26% 21.32% 16 0.03 458 6.76% 2011 (4.43) (5.62) (10.33) 25.31% 26.05% 18 0.11 472 7.17% 2010 28.34 26.77 28.35 13 0.18 345 5.92% 2009 34.19 32.67 17.52 7 N/A 140 2.87% 2008 (27.77) (28.51) (34.93) 7 N/A 87 2.79% 2007 (3.07) (4.04) (13.13) 8 N/A 133 2.58% 2006 29.77 28.51 23.48 ≤5 N/A 117 2.18% 2005 1.87 0.86 4.71 6 N/A 93 1.89% 2004 28.08 26.83 22.25 ≤5 N/A 68 1.50% 2003 34.21 32.90 46.03 ≤5 N/A 76 2.25% 2002 (5.80) (6.74) (11.43) ≤5 N/A 97 4.69% 2001 26.17 24.93 14.02 ≤5 N/A 72 3.99% 2000 26.21 24.98 22.83 ≤5 N/A 16 0.89% 1999 10.44 9.34 (1.49) ≤5 N/A 16 0.92% 1998 (9.18) (10.09) (6.45) ≤5 N/A 13 0.59%

09/30/97-12/31/97 1.94 1.69 1.68 ≤5 N/A 3 0.13%

DePrince, Race & Zollo, Inc. has presented this report in compliance with the Global Investment Performance Standards (GIPS®). 1. DePrince, Race & Zollo Inc. (DRZ) is an independent investment management firm, founded in 1995, that manages equity portfolios primarily for U.S. institutional

clients. 2. DRZ claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS

standards. DRZ has been independently verified for the periods March 31, 1995 through December 31, 2015 by The Spaulding Group. The verification report is available upon request. 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.

3. Accounts that experience cash flows of 10% or more will be temporary removed from the composite for one month. Additional information regarding the firm’s policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

4. The composite invests in U.S. stocks, ADRs, and foreign domiciled stocks traded in US dollars on the major US exchanges that generally have the following characteristics; a dividend yield generally above 1% and a market capitalization that does not exceed the largest market capitalization in the Russell Micro-Cap Value Index.

5. Past performance is not indicative of future results. The actual return and value of an account will fluctuate and at any point could be worth more or less than the amount invested. Individual account performance will vary according to individual client investment objectives.

6. The benchmark is the Russell Microcap Value Index which measures the performance of the microcap value segment of the U.S. Equity market. It includes those Russell Microcap Index companies with lower price-to-book ratios and lower forecasted growth values. This index is utilized to allow for comparison of the strategy’s performance to that of well-known and widely recognized index. Prior to January 2007 the composite was measured against the Russell 2000 Value index, which was changed to more accurately represent the composite strategy.

7. Total time-weighted rates of return are expressed in US dollars. Computations include the reinvestment of all dividends and capital gains. For investments in ADRs and foreign domiciled companies, dividends are included net of any withholding taxes.

8. The composite was created in October 1997. DRZ’s list of composite descriptions is available upon request. This composite requires a minimum asset level of $1,000,000 (one million dollars) for inclusion.

9. Net performance returns are calculated by deducting the highest investment advisory fee. 10. DRZ’s standard fee schedule for Micro Cap Value is 1.00% on all amounts. 11. Internal dispersion is calculated using the equal-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the

entire year; it is not presented for periods with 5 or fewer portfolios. The three-year annualized ex-post standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 months period. The three-year ex-post standard deviation is not required for periods prior to 2011.

12. All information contained in this document is provided for informational purposes only and should not be deemed as a recommendation to buy the securities mentioned. The securities highlighted in this document, if any, represent recent holdings. Each quarter, DRZ uses the same objective, non-performance based criteria to select these securities. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities discussed in this report.

13. If clients are listed in this document, it is not known they approve or disapprove of DRZ or the advisory services it provides. If included, the representative clients listed in this document are a cross section of current accounts that may or may not maintain similar investment objectives as those expressed by DRZ’s prospective clients. This list may include accounts that are not invested in the investment strategy described in this document.

14. Frank Russell Company is the source and owner of Russell Index data reflected in this material and all trademarks and copyrights related thereto. Unauthorized use, disclosure, copying or redistribution of such data is prohibited. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in this presentation.

17

Value Returns to Favor

• Since Value’s rally began mid-2015, we’ve added over +1370bps in relative performance.

• We continue to believe we’re in the early innings of a rebound for Value stocks as the group remains well below their 10-year mean vs. Growth.

Source: FactSet Chart: 12/31/2008 – 12/31/2016 Performance: 07/31/2015 – 12/31/2016, Unannualized

1

Value

Outperformance

Growth

Outperformance

Performance since July 2015:

DRZ MCV: +38.75%

RMCV Index: +24.76%

Value Returns to Favor

• The QE environment during the 4 years leading up to 2016 proved challenging for our Value Methodology. Within the Russell Micro Cap

Value Index, performance was bifurcated as speculative, money-losing companies and expensively valued Defensives dominated the space.

• During 2016, we experienced a dramatic improvement in relative performance as attractively valued Micro Cap stocks returned to favor.

• Since the Russell Micro Cap Value Index’s inception in May 2006:

• DRZ Micro Cap Value: +9.77%

• Russell Micro Cap Value: +6.07%

Source: Advent

2

-40

-30

-20

-10

0

10

20

30

40

50

60

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

DRZ Outperforms Long Term

DRZ Micro Cap Value Russell 2000 Value Russell Micro Cap Value

Annualized Return since Inception:

DRZ Micro-Cap Value: +11.63%

Russell 2000 Value: +8.63%

30.7

35.2

23.3

41.4

21.0

6.4

38.6

30.4

47.2

23.0

42.3

--

14.8

15.0

40.1

46.2

46.3

46.3

50.7

52.4

67.1

107.9

-- 20.0 40.0 60.0 80.0 100.0 120.0

Telecommunication

Services

Real Estate

Information Technology

Consumer Staples

Energy

Health Care

Financials

Industrials

Utilities

Consumer Discretionary

Materials

Year to Date Return by Sector

DRZ Micro Cap Value Russell Micro Cap Value

2016: Where We Outperformed

3

• A majority of the Portfolio’s outperformance was driven by stock selection within attractively valued Cyclical sectors.

• We had a few opportunities to own attractively valued Health Care and Utilities stocks in 2016, which contributed to performance.

Source: FactSet, Returns through 12/31/2016 Average Relative weight 12/31/2015 – 12/31/2016

-1.1

-0.3

-2.9

1.2

-0.1

-5.6

-2.2

6.9

-0.5

-4.2

4.6

-10.0 -5.0 0.0 5.0 10.0

Telecom

Real Estate

Technology

Consumer Staples

Energy

Health Care

Financials

Industrials

Utilities

Consumer

Discretionary

Materials

Average

Overweight/Underweight

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