Q&A with Kelli Hueler: - Napfa

educe plan costs
with collective investment funds
PARADIGM’S SMALL-CAP COLLECTIVE FUND
IS DESIGNED FOR THE 401(K) MARKET
Recent legislation is causing advisors and plan sponsors to
review their fund line-ups to provide the best balance of
performance, risk control, and cost.
Institutional investment consultants have been using collective
investment funds (CIFs) for years in the mega-plan market.
Advantages include significantly reduced costs, less exposure
to the volatility of retail client flows, and revenue-sharing
agreements customized to fit your business model.
These vehicles are now available on open-architecture platforms
for qualified plans of all sizes.
www.paradigmcapital.com
Supporting the mission of NAPFA since 2007.
NEW
paradigm value
collective fund r †
(cusip)
Total Expense Ratio: 0.98%
paradigm value fund
(pffax)
Four-star Small-Cap Blend fund
Rated four stars by Morningstar
Total Expense Ratio: 1.51%
Ranking as of 8/31/12
The Paradigm Value Fund strategy
seeks to provide true small-cap exposure
in a moderately concentrated portfolio.
The strategy has a history of lower
volatility than peers and the benchmark
Russell 2000 Value.
Contact Gordon Sacks,
Director, Mutual Funds
at 518-431-3261 or
gsacks@paradigmcapital.com
†
The Paradigm Value Collective Fund is only
available to eligible retirement plans.
The Paradigm Value Collective Fund is a collective investment fund (“CIF”) created by the Hand Composite Employee Benefit Trust and
sponsored by Hand Benefits & Trust Company, a BPAS Company, that invest in the strategies of Paradigm Capital Management, which serves
as the sub-advisor to the CIF. For funds with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption
fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars,
the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. An overall
rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar
Rating Metrics as of the date stated. For funds with at least a three-year history, Morningstar calculates a Morningstar Rating TM based on a
Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges,
loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in
each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10%
receive 1 star. An overall rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year
(if applicable) Morningstar Rating Metrics as of the date stated.
Consider the investment objectives, risks, charges, and expenses of each Paradigm Fund carefully before investing. The prospectus and the
statement of additional information contain this and other information about the Funds and are available by calling 800-239-0732. Please read
the prospectus and statement of additional information carefully before investing.
As of 8/31/2012 the number of funds in the Small-Cap Blend category tracked by Morningstar was 588 for the 3 year period and Overall
Ranking, and 510 for the 5 year period. As of 8/31/2012 Paradigm Value Fund did not have a 10 year rating. Not FDIC-Insured. May Lose
Value. No Bank Guarantee. Distributor: Rafferty Capital Markets, LLC.
Napfa Advisor SEPTEMBER 2012 9