Presentation of the - Callander Fund

Presentation of the
Callander Fund – Asset
&
Callander Fund – U.S. Core Stock Holdings
April 12-16, 2010

This presentation has been realised by Silvercrest Asset Manager, Fund Manager of
the Callander Fund – Asset and the Callander Fund – U.S. Core Stock Holdings
1
Speakers:
Stanley y A. Nabi, , CFA, , Vice Chairman
Ian W. Smith, Managing Director

The U.S. Economy
• The U.S. Economy has progressed from recession to recovery, and should enter an
expansion phase by the end of 2010.
• Growth in 2010 is expected to solidly exceed that of the European Union but trail
moderately that of the developing economies economies.
• The forthcoming expansion in the U.S. is likely to be manufacturing-driven in its early
stages rather than heavily reliant on consumer spending, as had been the case in most
post-War cycles.
• The perception that consumption would be a significant drag has already been proven to
be greatly exaggerated. exaggerated Despite the increase in unemployment unemployment, real disposable personal
income has recently managed to reach record levels, aided by moderate wage gains and
various elements of the stimulus packages.
• Payroll Employment seems slated to show a net increase in very short order.
2

The U.S. Economy
• Although an inflection point in monetary policy may have been reached, strategic
withdrawal of liquidity and the adoption of other forms of restraint are likely to be both
cautious and gradual.
• The threat of deflation has all but vanished. Although signs of mild inflation are visible
(CPI, PPI, etc.), they are not of a magnitude that would undermine the upturn. Elevated
unemployment, timid labor, modest increases in wages, large industrial slack, strong
productivity p y and low interest rates should restrain any y broad increase in pprices.
• Washington and the public have apparently awakened to the threat of excessive deficits.
Although not generally welcome, various taxes and/or levies are likely to be imposed or
iincreased. d CCombined bi d with ith some spending di restraints t i t and d hi higher h ttax revenues ffrom rising i i
business profits, the measures should begin to contain, then reduce, the deficit by 2011.
3

The U.S. Economy
• Despite a strong rebound in the market since the lows of March 2009, stocks continue to
be valued well below their historical norms norms.
• Non-financial companies have accumulated a record amount of cash which should
encourage the industrial sector to expand, modernize, make acquisitions, resume share
repurchases, raise dividends and reduce debt. In part, the expansion will serve to
accommodate growing export demand, particularly to the developing countries.
• While the almost stunning rebound in corporate profits may not continue at its recent
pace, further gains appear to be in prospect well into 2011, providing fundamental
support for the market.
• Th The compression i iin valuations l ti within ithi the th various i slices li of f the th market k t hint hi t at t prudent d t
caution among investors. Large caps, small caps, value and growth slices of the market
all trade within a narrow P/E range allowing suitable selection with little or no
compromise
compromise.
4

The U.S. Economy
• The fiscal difficulties being experienced by various euro-zone countries have provided
renewed support for the UU.S. S dollar and reaffirmed its role as the prime reserve
currency. This, together with various tensions surfacing in emerging economies, such
as escalating inflation in China and India, may shift investor focus toward a more
balanced view of the risks and potential of the United States States.
• For at least two years there has been a flow out of U.S. stocks into either fixed income
or developing markets. Recent events should reverse some of this outflow.
5

Industrial Production
The steep rebound in industrial production speaks to a revival in manufacturing, excessively reduced inventories,
and favorable trends in exports.
15
10
5
0
-5
-10
-15
-20
70
75
80
Source: Federal Reserve, Silvercrest
6
u.s. US U.S. iindust d Industrial trial i l Production pr oduction d ti
7 Month 7 Month % % A.R. Monthly Feb 10: 7.4%
85
90
95
Source: Federal Reserve, Silvercrest
00
05
10

Payroll Employment
Job losses appear to be abating. We expect employment to turn positive sometime in the first quarter of 2010.
600
400
200
0
-200
-400
-600
-800
80
82
Source: ISI, Silvercrest
7
84
86
88
U.S. Payroll Employment
u.s. payr ol l empl oyment
M/M Change 3 Month Average Feb. 10: -57
M /M Change 3 M onth A verage Feb. 10: -57
90
92
94
96
98
00
02
04
06
08
10

Manufacturing Employment
Our optimism on the future of employment trends finds support in the incoming data on hiring in manufacturing
which is generating significant job additions.
50
0
-50
-100
-150
-200
-250
-300
05
06
Source: IMF, Silvercrest
8
US U.S. Manufacturing Employment
u.s. manuf actur ing empl oyment
Thousands Thousands Month Month to Month to Month Difference Difference Feb. Feb. 10: 10: 1
07
08
09
10

Goods Exports
Strong exports impart various benefits, notably support for manufacturing and help to the dollar by reducing the
trade deficits.
27
25
23
21
19
17
15
00
01
Source: Commerce Department, Silvercrest
9
02
U.S. Goods Exports
u.s. goods expor t s
Monthly Monthly Percent Percent of of Manufacturing Shipments Shipments Jan. Jan. 10: 25.6 10: 25.6
03
04
05
06
07
08
09
10

Goods Exports
U.S. exports to emerging economies now exceed those to developed economies. With the former generating
superior growth, this trend should be favorable for U.S. manufacturing.
60
58
56
54
52
50
48
46
44
42
40
94
95
96
Source: ISI, Silvercrest
10
97
98
99
u.s. U.S. goods Goods expor Exportst
s
3 Month 3 MMonth onth Average A verage Percent Percent Dec. Dec. 09 09
00
01
02
03
04
05
06
Emerging Economies 53.4%
Developed Economies 47.4%
07
08
09

Personal Disposable Income
Despite the impact of the recession, particularly high unemployment, Real Personal Disposable Income (RPDI)
remained essentially stable and is currently in a recovery mode due to: (a) the stimulus package, (b) continual
gains in hourly wages, (c) increased unemployment benefits.
10,200
10,000
9,800
99,600 600
9,400
Jan-06
Apr-06
Jul- 06
Oct-06
Source: ISI, Silvercrest
11
uu.s. s U.S. real r eal Real per Personal sonal Disposable disposabl Income e income
Jan-07
Apr-07
Quarterly Dollars Dec. 09: 10,095.1
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09

Consumer Spending
Following a brief period of frugality, consumer spending is rebounding and is now solidly in positive territory.
10
8
6
4
2
0
-2
-4
60
65
Source: ISI, Silvercrest
12
70
u.s. U.S. r eal Real consumer Consumer spending Spending
75
80
Y/Y Percent Feb. Feb. 10: 1.6% 10: 1.6%
85
90
95
00
05
10
Source: Bloomberg, Silvercrest

Retail Sales
Retail sales succumbed to 14 months of decline, but have been in positive territory for several months as
consumers shed some of their pessimism.
8
6
4
2
0
-2
-4
-6
-88
-10
-12
Source: Strategas, Silvercrest
13
US U.S. Retail Sales
u.s. r et ail sal es
Monthly Monthly Y/Y Y/Y/ Pct. Pct. Chg Chg. Feb: 3.9% Feb: 3.9%
Jan-0 -08
Feb-0 b08
Mar-0 -08
Apr-008
May-008
Jun-0 -08
Jul-0 l-08
Aug- 08 0
Sep-0 -08
Oct-0 t-08
Nov-008
Dec-008
Jan-0 -09
Feb-0 b09
Mar-0 -09
Apr-009
May-009
Jun-0 -09
Jul-0 l-09
Aug- 09 0
Sep-0 -09
Oct-0 t-09
Nov-009
Dec-009
Jan-1 -10
Feb-1 b 10

Compensation per hour
Despite the adverse impact of the recession, compensation per hour never turned negative during the recession
due to contractual and other wage increases and some benefits from the stimulus package.
12
10
8
6
4
2
0
60
65
Source: Federal Reserve
14
70
u .s. sU U.S. Scompensat compensat Compensation ion per hour hour
75
4 4 Quarter Avg. Y/Y % Quarterly Quarterly 4Q09: 0.8%
80
85
90
95
00
05

Productivity
Helped by prompt management action in response to the recession, productivity reached the highest level in
more than forty years causing profits to rebound even in the face of relatively weak revenues.
8
6
4
2
0
-2
-4
78
80
82
84
Source: ISI, Silvercrest
15
86
88
u.s. U.S. pr oduct Productivity ivit y
Percent PPercent t 3 3Q 3 Quarter t % %AR A.R % A.R. Q409 Q4 Q4 09: 74% 7.4% 09: 7.4%
90
92
94
96
98
00
02
04
06
08

Unit Labor Costs
The exceptional gain in productivity has pushed Unit Labor Cost into negative territory, arguing against a nearterm
cycle of wage inflation.
14
12
10
8
6
4
2
0
-2
-4
-6
60 60
65 65
Source: ISI, Silvercrest
16
70 70
75 75
U.S. Unit Labor Costs
u.s. unit l abor cost s
Y/Y% Y/Y % Quarterly 4Q 4Q 09: -4.7% -4.7%
80 80
85 85
90 90
95 95
00 00
05 05
10 10

Debt Service Payments
Debt service payment as a percent of Disposable Personal Income has been in retreat as borrowers repay loans
and as interest rates remain at historic lows.
14
13 13.5 5
13
12 12.5 5
12
11.5
11
10.5
10
80
82
84
86
Source: Global, Silvercrest
17
88
u.s. U.S. ddebt Debt bt ser Service vice i Payments paymentts Quarterly Percent of DPI Sep. 09: 12.85
Quarterly Percent of DPI Sep. 09: 12.85
90
92
94
96
98
00
02
04
06
08

Dollar Index
On a trade-weighted basis, the U.S. dollar is no lower today than where it was more than 30 years ago. It is
possible that it may now be at a sustainable support level from which it would extend its recent rebound.
170
160
150
140
130
120
110
100
90
80
70
75
77
79
81
83
Source: Bloomberg, Silvercrest
18
85
87
U.S.
U.S.
DOLLAR
Dollar INDEX
Index
89
Monthly Mar 10: 81 81.3 3
Monthly Mar. 10: 81.3
91
93
95
97
99
01
03
05
07
09

Federal Budget Deficit
The Federal budget deficit has rapidly deteriorated since the onset of the recession and is likely to remain
elevated as a percent of GDP at least through FY2011. This condition has caused both Washington and the
public at large to seek measures to alleviate the deterioration. Various taxes and levies are inescapable.
6
4
2
0
-2
-4
-66
-8
-10
-12
47
50
53
56
59
62
65
Source: Federal Reserve, Silvercrest
19
f eder
Federal
al budget
Budget Deficit
def icit
68
Yearly Percent of GDP 2010: -10.6
Yearly Percent of GDP 2010: -10.6
71
74
77
80
83
86
89
92
95
98
01
04
07
10

Public Debt
U.S. public debt as percent of GDP is about in line with that of Germany, Canada and France, but the annual
deficit ratio is much more elevated.
200% Public Debt, Pct of GDP
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
0%
SWN
KOR
-3%
2009 International Comparison of
2009 Public iin t er Debt national ti vs. Budget l compar Deficit iison of f
publ ic debt ver sus budget def icit
GER
BRA
Source: Strategas, Silvercrest
20
CHN
AUS
-6%
ITA
CAN
RUS
JPN
TUR
FRA
-9%
ESP
IND
USA
-12%
IRE
T rouble Zone…
GRC
UK
ICE
Budget Deficit, Pct of GDP
-15%
-18%

Public Debt
The proliferation of entitlement programs in the developed economies as a sociopolitical tool may have reached a
destabilizing expense.
120
100
80
60
40
20
0
'90
publ ic debt in advanced vs. devel oping economies
Public Debt in Advanced Yearly vs. % Developing of GDP Economies
'94
Source: Strategas, Silvercrest
21
'98
Yearly % of GDP
'02
'06
Developed Countries 108% est.
Developing Countries 33% est.
'10
'14

Cash
Key metrics related to corporate profitability and cash generation should make nearly a full recovery from the
impact of the recession reaching new highs.
22

Cash
Non-financial corporate balance sheets currently hold a record amount of cash as a percent of total assets. Such
liquidity provides uncommon flexibility in making corporate decisions, notably in the deployment cash. Viewed
from a different perspective, cash on U.S. corporate balance sheets (ex financials) reached a record 12.4% of
market capitalization, equal to $1.1 trillion.
55 5.5
5
45 4.5
4
3.5
3
2.55
2
59
U.S. NON-FINANCIAL CORPORATIONS CASH
U.S. Non-financial Corporations Cash
69
Source: Strategas, Silvercrest
23
Quarterly Percent of Total Assets Sep. 2009: 5.4%
Quarterly Percent of Total Assets Sep. 09: 5.4%
79
89
99
09

P/E ratios
The opportunities in the U.S. stock market are not limited to specific categories. The compression in P/E ratios
suggest that nearly all categories offer attraction: large caps, small caps, growth and value.
50
45
40
35
30
25
20
15
10
5
0
Source: Silvercrest
24
pr iice Price t o ear to Earnings nings i r atio Ratio ti per Perspective
spective ti
Yearl Yearly y
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
Russell 1000 Growth Russell 1000 Value

Price to book ratio
Several metrics are supportive of the stock market. The Price-to-Book ratio of the S&P 500 is in line with
historical averages despite the recent market recovery.
6
5
4
3
2
1
0
78
80
82
84
Source: ISI, Silvercrest
25
86
88
S&P S&P 500 500 prprice ice tto o book value val ue
90
92
Monthly March 10: 2.3
94
96
98
00
02
04
06
Source: Strategas
08
10

Fund flows
Consistent liquidation of equity holdings in recent years in favor of fixed income may have reached an extreme,
with a reversal likely as confidence returns.
$60
$40
$20
$0
-$20 $20
-$40
-$60
95
net equity Net equity f und fund f l ows flows minus net bond fund f und flows f l ows
97
Source: Strategas, Silvercrest
26
Monthly 3 Month MA, billions of of USD Dec. Dec. 09: 09: -$40.3 -$40.3
99
01
03
05
07
09

20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
P/E ratios S&P 500
The P/E ratio for the S&P 500 is close to 14-times, which is below its historical average, but far lower than what
current inflation and interest rates would indicate.
12.8
S&P 500 ltm P/E levels by
s&p500 s&p 500
cpi
ltmp/e ltm Y/Y%
p/e
tranche
levelsby
levels by
cpi y/y% t r anche
18.3
17.4
14.7
10 10.9 9
9.5
8.5 8.0
-2-0% 0-2% 2-4% 4-6% 6-8% 8-10% 10-12% 12-14%
Source: ISI, Silvercrest
27
30
25
20
15
10
5
0
79
81
S&P 500 12-month forward P/E ratio
S&P 500 12-month
Monthly March
f or
10: war
15.0 15 0
d p/e p r at io
83
85
87
89
91
Monthly March 10: 15.0
93
95
97
99
01
03
05
07
09

BRIC index vs. S&P 500
The stock markets of key developing countries have trailed the key indices in the U.S. over the past several
months.
114
112
110
108
106
104
102
100
98
28
performance comparison: BRIC INDEX vs S&P 500 INDEX
Performance Comparison: BRIC Index vs. S&P 500 Index
Source: Silvercrest
Oct Nov Dec Jan Feb Mar
MSCI BRIC
S& P 500

Callander Fund - Asset: Sector Allocation
• The portfolio is overweight the Producer Durables and Materials sectors at the
expense of the Consumer Discretionary, Financial Services and Technology
sectors
• Sector allocations are a result of our bottom up stock selection process
As of March 30, 2010
Weight
Callander Fund Russell 2000
Sector Asset Index Difference
Producer Durables 25 25.0 0 79 7.9 17 17.1 1
Materials & Processing 19.7 8.7 11.0
Energy 12.1 4.3 7.8
Consumer Staples 7.2 2.2 5.0
Other 0.0 0.4 -0.4 0.4
Health Care 11.8 14.1 -2.3
Utilities 0.0 4.0 -4.0
Autos & Transportation 0.0 4.1 -4.1
Technology 5.8 14.5 -8.8
Financial Services 12.8 21.6 -8.8
Consumer Discretionary 5.6 17.8 -12.1
Total 100.0 100.0
29

Callander Fund – Asset: Portfolio Characteristics
• The portfolio trades at an significant discount to the benchmark Russell 2000
Index using a number of metrics
• Price to Earnings
• Price to Book Value
• Price to forecast EPS growth g
30
As of March 30, 2010
Callander Fund Russell 2000
Asset Index
P/E using g FY1 Est 15.54 18.85
P/BV 1.72 1.94
P/E to Growth Rate 1.29 2.36

Callander Fund - U.S. Core: Sector Allocation
• The portfolio is overweight the Health Care and Producer Durables sectors and
underweight Technology and Utilities Utilities.
• Sector allocations are a result of our bottom up stock selection process
As of March 30, 2010
Weight
Callander Fund S&P 500
Sector U.S. Core Index Difference
Health Care 24.0 12.6 11.4
Producer Durables 17.1 10.5 6.6
Energy 12.1 11.3 0.8
Autos & Transportation 0.0 0.0 0.0
Consumer Discretionaryy 11.5 11.8 -0.4
Materials & Processing 2.4 3.7 -1.4
Financial Services 15.3 16.9 -1.5
Consumer Staples 7.6 10.0 -2.3
Utilities 0.0 6.1 -6.1
Technology gy
10.0 17.2 -7.2
Total 100.0 100.0
31

Callander Fund - U.S. Core
• The portfolio p trades at an significant g discount to the benchmark
Russell 2000 Index
32
As of March 30, 2010
Callander Fund S&P 500
U.S. Core Index
P/E using FY1 Est 13.37 15.40
P/E to Growth Rate 1.35 2.39

Featured on Last Marketing Trip
PARAEXEL INTERNATIONAL. – Sold
Purchase Price : $10.28 (June 2009)
Price on Trip : $13.00
Current Price : $23.50 (March 2010)
% Gain : 129% %
Annualized Return: 127%
CARPENTER TECHNOLOGY CORP CORP. – Still Held H ld iin FFund d
Purchase Price : $23.03 (October 2009)
Price on Trip : $23.00
Current Price : $38.00
% Gain : 65%
Annualized Return: 130%
33

Company Portfolio: GREAT LAKES DREDGE & DOCK (GLDD)
Purchase Price: $4.63 (18 March 2010)
Current Price: $5.36
Reasons for Purchase
• GLDD was founded in 1890, with a long history to build its reputation; both domestically
and abroad.
• The dredging g g market is specialized, p , competitive p and requires q expensive p equipment. q p The
cost of entry is high.
• Competition is restricted by government regulations. Only U.S. companies can engage in
domestic work.
• Domestic backlog is up substantially, partly due to increase in global trade.
• Projects are being helped by the stimulus package/public works.
• Balance sheet is strong. Debt is being paid down rapidly through application of free cash
fl flow.
• Valuation is modest, even based on conservative earnings estimates and a significant
discount to market multiple.
• Management is experienced and reliable. reliable
34

EXHIBIT I – INVESTMENT MANAGEMENT TEAM
Ian W. Smith SS. AA. Nabi, Nabi CFA
Roger W. Vogel, CFA
Managing Director
Vice Chairman
Managing Director
Portfolio Compliance
Kimberly Murdolo, V.P.
Research & Publications
Richard Hough, M.D.
James Carlson, A.V.P.
35
Analysts/Managers: Stocks
Jeffrey Allen, CFA, S.V.P.
Anthony Fiore, CFA, V.P.
Burnett (Jody) Hansen, CFA, S.V.P.
Katalin Kluge, CFA, V.P.
Stanley Reese, CFA, M.D.
Matthew Arpano, M.D
Analysts/Managers: Bonds
Patrick Bittner, CFA, M.D.
Russell Brown, CFA, S.V.P.
Michael Monaghan, A.V.P.
Trading
Paul McCrann, M.D.
Matthew Fiscella
Brian Beekman
Performance
Control
Patricia Cheung
Lisa Chin

EXHIBIT II – STOCK INVESTMENT MANAGEMENT TEAM
St Stanley l A. A Nabi, N bi CFA jjoined i d Sil Silvercrest t AAsset t MManagement t as Vi Vice Ch Chairman i and d ffunctions ti as th the fi firm’s ’ chief hi f
strategist. Mr. Nabi joined Silvercrest from Credit Suisse Asset Management where he headed their $5-billion value
equity team. He arrived at Credit Suisse as a result of that firm’s merger with Donaldson, Lufkin & Jenrette (DLJ),
where he served as Vice Chairman. Previously, Mr. Nabi was Director of Equity Research and Chief Investment
Strategist at Bessemer Trust. He had been a General Partner and Chief Investment Officer at Lazard Fréres, where
he was hired and trained by y the legendary g yfinancier André Meyer. y Mr. Nabi has served as President and Director of
the New York Society of Securities Analysts, Director of the Financial Analysts Federation (now AIMR), Associate
Editor of Financial Analysts Journal, investment advisor to the National Bureau of Economic Research, and Adjunct
Professor of finance and investments at Fordham University’s Graduate School of Business. He is presently a
consultant to the United States Steel and Carnegie Pension Fund as well as a Chartered Financial Analyst. Mr. Nabi
is a graduate of Columbia University where he studied securities analysis under Professor David Dodd, co-author of
Security Analysis Analysis, still considered to be the definitive work on fundamental equity research research.
Ian W. Smith is a Managing Director and portfolio manager of equity and fixed income portfolios at Silvercrest Asset
Management. Prior to Silvercrest, Mr. Smith was a Vice President at Credit Suisse Asset Management (CSAM),
where he managed accounts specializing in global asset allocation. He arrived at CSAM as a result of that firm’s
merger with Warburg, Pincus Asset Management where he had worked since 1997. Previously, he worked in
institutional client services within the international equity group at Scudder, Stevens & Clark. Mr. Smith holds a B.S. in
Business Management from the University of Southern California. He is a member of the New York Society of
Security Analysts and NYSSA’s Private Wealth Management Committee.
Roger W. Vogel, CFA, joined Silvercrest Asset Management as a Managing Director and co-manager of the firm’s
large and small cap value capabilities. Prior to Silvercrest, Mr. Vogel was Managing Director at Credit Suisse Asset
Management co-managing both small cap and large cap portfolios. He arrived at Credit Suisse as a result of the DLJ
merger where he worked since 1993 in a similar capacity. Previously, Mr. Vogel was a portfolio manager at Chemical
Bank and Manufacturers Hanover Trust. He attended New York University.
36

EXHIBIT II CONT. – STOCK INVESTMENT MANAGEMENT TEAM
JJeffrey ff C. C Allen, All CFA, CFA iis a SSenior i Vi Vice PPresident id t and d analyst l t ffor th the fi firm’s ’ llarge cap and d small ll cap value l equity it
capabilities. Prior to Silvercrest, Mr. Allen was a Vice President at Credit Suisse Asset Management, where he was
the analyst for the small cap value product. He arrived at Credit Suisse as a result of that firm’s merger with DLJ,
where he had worked since 1999 as a generalist equity analyst in DLJ Asset Management’s large cap and small cap
value equity areas. Previously, he worked in the corporate finance division of J.P. Morgan Chase & Co. He received a
B.S. in business administration from Villanova University y in 1990 and an MBA in finance from New York University y in
1997.
Burnett (Jody) Hansen, CFA, joined Silvercrest Asset Management in 2007 as Senior Vice President and analyst
for the firm’s large-cap and small-cap value products. Prior to Silvercrest, Mr. Hansen followed the financial sector
and led the global financial-services team at Credit Suisse Asset Management (CSAM) for four years. Before CSAM,
he worked at First Manhattan Co. and Morgan Stanley, where he held similar responsibilities. His prior experience
includes being a principal in the strategic consulting practice at Price Waterhouse, a strategy consultant at the Center
for Applied Research, and an officer at two New England banks. Mr. Hansen holds a B.A. in English literature from
Yale University and an M.B.A. in finance and decision sciences from the University of Pennsylvania's Wharton
School. He is a Chartered Financial Analyst and a member of the editorial board of CFA Magazine.
Katalin Kluge, CFA, joined Silvercrest as an Equity Research analyst in 2007, after receiving her MBA in Finance
from New York University’s Stern School of Business. Previously, Ms. Kluge had run a translation business in Paris,
France. She worked as a Hedge Fund Summer Associate in New York. Ms. Kluge also holds an M.A. in French
Literature from the Sorbonne, Paris.
37

EXHIBIT II CONT. – STOCK INVESTMENT MANAGEMENT TEAM
Anthony MM. Fiore Fiore, CFA CFA, is a Vice President and analyst for the firm’s firm s large and small cap value products products. Prior to
Silvercrest, Mr. Fiore was a senior equity analyst at Standard & Poor’s, where he covered the machinery, industrial
conglomerates, and diversified commercial services industries. Previously, Mr. Fiore was a generalist equity analyst
and portfolio manager at State Street Global Advisors in the firm’s Global Fundamental Strategies group. He received
a B.S. in Business Administration from the University of Vermont with a concentration in Finance.
Stanley H. Reese, CFA, joined Silvercrest Asset Management as a Managing Director and as Chairman of the
firm’s Investment Policy Committee. Prior to Silvercrest, Mr. Reese was the Managing Director in charge of Scudder,
Stevens & Clark’s $14 billion Private Investment Counsel business until Scudder’s sale to Deutsche Bank in the
Spring of 2002. Mr. Reese joined Scudder in 1980 and served as an investment consultant, portfolio manager and
member of the firm’s Investment Committee before assuming management responsibility for the private client group
in 1999. 1999 Mr Mr. Reese received his BB.S. S from the University of Amsterdam (he is a native of Holland) and his MBA from
Columbia University.
38

EXHIBIT II CONT. – INVESTMENT MANAGEMENT TEAM
Matthew Arpano joined Silvercrest as a Managing Director and portfolio manager of equity and fixed income portfolios.
Previously, Mr. Arpano was an Executive Director at Morgan Stanley’s Private Wealth Management group in New York.
He began his investment career in 1992 at Morgan Stanley. Mr. Arpano earned an M.B.A. from the University of Miami in
1992. He was graduated summa cum laude from the University of Rhode Island, where he was an economics major and
an Academic All-American baseball player. Mr. Arpano serves on the Board of Directors for the University of Miami
Al Alumni i Association. A i ti He H is i also l a member b of f the th Economics E i Club Cl b of f NNew YYork. k
Paul McCrann, Managing Director, is in charge of stock trading. Prior to Silvercrest, Mr. McCrann was a Director at
Credit Suisse Asset Management, where he served in a similar capacity. He arrived at Credit Suisse as a result of that
firm’s merger with DLJ where he had worked since 1999. Previously, Mr. McCrann served as an institutional sales/trader
at Dillon Reed for two years. years Mr. Mr McCrann began his career at Bessemer Trust NA, NA where he worked for eight years on
the equity trading desk. Paul graduated from the City University of New York in 1988, cum laude.
Richard R. Hough, III, is a Managing Director and has responsibility for marketing and business strategy and
development. Prior to Silvercrest, Mr. Hough was a founding Director of Children’s Scholarship Fund and where he was
responsible p for marketing, g relationship pmanagement g and research and statistical analysis. y Previously, y Mr. Hough g worked
as a managing editor and a speechwriter and policy analyst. Mr. Hough received a B.A. in philosophy and politics from
Princeton University.
39

EXHIBIT II CONT. – FIXED INCOME INVESTMENT MANAGEMENT TEAM
Patrick A. Bittner, CFA, is a Managing Director and manager of the firm’s actively managed tax exempt fixed income
business. Prior to joining Silvercrest, Mr. Bittner was a Vice President at Credit Suisse Asset Management (CSAM) where
he managed tax exempt fixed income portfolios for high net worth and institutional clients. He also managed a money
market fund as well as two mutual funds, a New York municipal bond fund with five stars from Morningstar and a National
municipal bond fund with four stars from Morningstar. He arrived at (CSAM) as a result of that firm’s merger with Warburg
Pi Pincus, where h he h had h d worked k d since i 1994 iin a similar i il capacity. it PPreviously, i l MMr. Bitt Bittner spent t th three years as an assistant i t t
tax exempt portfolio manager in the institutional fixed income department at Wachovia Bank. He received a B.S. in
Economics from the University of Wisconsin – Madison and graduated from Temple University with a M.B.S. in
Accounting in 1994. Mr. Bittner is a member of the New York Society of Security Analysts and is a Chartered Financial
Analyst.
Russell B. Brown, CFA, is a Vice President overseeing the management of the taxable fixed income accounts. Mr.
Brown joined Silvercrest in May 2005 from Hughes Capital Management in Virginia, where he managed institutional fixed
income portfolios. Prior to that, he managed private and institutional fixed income accounts for Henry Kaufman & Co. and
its successor firm, Kaufman & Kubarych Advisors. His first assignment in fixed income was as a portfolio manager for
Continental Insurance. Mr. Brown has a B.S. in Applied Mathematics from the State University of New York at Stony
BBrook kand d an MBA iin Fi Finance and d IInvestments t t ffrom Baruch B hCCollege. ll
Michael Monaghan joined Silvercrest in February 2010 as an Assistant Vice President in the Fixed Income Group. Prior
to Silvercrest, Michael was the head fixed income trader at H.A. Schupf & Co., LLC and was responsible for all fixed
income related trading in the firm. Previously he worked as a Municipal Bond Trader and Assistant Portfolio Manager in
the Private Client Group at Warburg Pincus and its successor firm firm, Credit Suisse Asset Management Management. Michael received a
B.S. in Finance from St John’s University.
40

EXHIBIT III – SELL DISCIPLINES ARE STRICTLY OBSERVED
Level One: Valuation
Level Two: Risk Protection
• Excessively Valued
– Best case scenario over-recognized in stock price Trim/Sell
• Under performance
– Stock under performs benchmark more than 10% Review
• Sector allocation
– Becomes excessive due to strong returns Trim
• Stock diversification
Level Three: Changes to Company
41
– Stock reaches maximum position size Trim/Sell
• Investment Thesis Changes
– Changes to management or business prospects Review/Trim

EXHIBIT IV – SILVERCREST EQUITY PHILOSOPHY-MANAGEMENT INTERVIEWS
42
• The portfolio team meets with managements prior to investing
• Approximately pp y 100 management g meetings g are held each yyear
• Meetings provide the basis for qualitative evaluations
– Management’s objectives/shareholder orientation
– Would you y work for this management? g
– Are they trustworthy?
– Can they execute their plan to create value for shareholders?
• An inventory y of management g meetings g allows for opportunistic
pp
investments
– Better understanding of downward revaluations
– Opportunities presented by loss of growth investor focus
– Being prepared to seize temporary pricing inefficiencies

EXHIBIT V – SILVERCREST EQUITY PHILOSOPHY—VALUATION
We buy high-quality stocks on sale.
43
• A company company’s s equity must be fairly priced relative to its peers
• Silvercrest’s dividend discount model is the key valuation metric
• We take advantage g of misvaluations that may y arise from:
– Market (mis)perceptions
– Lack of brokerage and research sponsorship
– “Out of fashion” industries or companies
– Other Other, non-fatal non fatal causes
• The goal is to buy quality companies at a discount to “fair value”

Custodian and promoter
Banque de Luxembourg, 14 boulevard Royal, L-2449 Luxembourg
CALLANDER FUND - INFORMATION FORM
Luxembourg Mutual Fund - Part 1 (20/12/2002 Law) - UCITS III
Orders to
E.F.A (European Fund Administration S.A.)
Names Currency ISIN Code Telekurs Code WKN Code
Subsidiary of Banque de Luxembourg, Banque et Caisse d'Epargne Callander Fund-Asset C1 USD LU0012008875 CH595132 971194
dde l'Et l'Etat t & KBL European E Private P i t Bankers B k SA 2 rue d'Alsace - P.O. Box 1725 L-1017 Luxembourg.
Cll Callander d FFund-Asset dA tC2 C2 EUR (Hedged) LU0167130078 CH1591816 136478
Callander Fund-US Core Stock Holdings C1 USD LU0147154016 CH1413680 172936
M. Mathieu Jamrozik Tel : +352.48.48.80.411 Callander Fund-US Core Stock Holdings C2 EUR (Hedged) LU0167130581 CH1591821 136479
Mme. Marie Schumacher Tel : +352.48.48.80.826
M. Ludovic Skowron Tel : +352.48.48.80.582 Callander Fund-Japan New Growth C1 JPY LU0097747421 CH802617 590936
Fax : +352.48.65.61.80.02 +352 48 65 61 80 02 Callander Fund Fund-Japan Japan New Growth C2 EUR (Hedged) LU0192479029 CH1857062 A0B50J
Callander Fund-China Universe C1 USD LU0192479375 CH1857144 A0B50G
Clearstream : 10023
Euroclear : 00281
Callander Fund-China Universe C2 EUR (Hedged) LU0192479615 CH1857150 A0B50H
Orders have to be entered by fax before 2 PM (Luxembourg time) with
the principal p p clearly y indicated.
Callander Fund-Central Europe C1 EUR LU0073519844 CH583137 987308
Callander Fund-South Eastern Europe C1 EUR LU0373272714 CH4338268 A0Q434
Subscriptions - redemptions terms Callander Fund-Swiss Growth Mid Cap C1 CHF LU0012160239 CH596596 172935
Settlement day (Subscriptions and redemptions) : D+5
Delivery versus payment
Callander Fund-Swiss Growth Mid Cap C2 EUR (Hedged) LU0272061077 CH2744635 A0LFAT
Callander Fund-Global Security C1 USD LU0298334862 CH3067196 A0MR0L
Fees (as a NAV percentage) Callander Fund-Global Security C2 EUR (Hedged) LU0298335679 CH3067239 A0MR0M
Maximum subscription fees 4 %
Maximum redemption fees 1 % The Net Asset Value is calculated on each business day in Luxembourg based on the latest known prices.
Maximum conversion fees 1 %
Annual management fees (C1, C2) 2 % Information ressources
Performance fees (High Water Level) 10 % - International Herald Tribune - Europerformance / Fininfo
- Lipper Analytical Services - Internet www.callanderfund.com
Countries of distribution - Standard & Poor's - Bloomberg Callander
LU, FR, DE, AT, IT, ES, GB, CH, SE
The funds are accessible only to institutional clients in IT and GB
- Morningstar Europerformance - Reuters BDLLUX04
The Callander Fund - Japan New Growth is registered for sale in Liechtenstein and Singapore
Subscriptions of units may only be effected on the basis of the prospectus accompanied by the management
regulations and sub-fund descriptions or on the basis of the simplified prospectus.
44

For further information about the Callander Fund, please contact Ademus S.A in Paris
Catherine de Christen Nicolas Bague
Chief Executive Office Marketing Manager
Tel. +33 (0)1 53 53 88 00 Tel. +33 (0)1 53 53 88 29
cdechristen@ademus.fr nbague@ademus.fr
Cécile Migliore Juliane Kalbe
Relationship Manager Relationship Manager
Tel. +33 (0)1 53 53 88 03 Tel. +33 (0)1 53 53 88 31
cmigliore@ademus.fr jkalbe@ademus.fr
Dominique Meeke Diana Hautbout
Relationship Manager Marketing Assistant
Tel: +33 6 14 86 30 48 Tel: +33 (0) 1 53 53 88 18
dmeeke@ademus.fr dhautbout@ademus.fr
Nancy Diard
Relationship Manager
Tel: +33 (0)1 53 53 88 20
ndiard@ademus.fr
Callander Managers S.A. in Luxembourg.
Marc Cellier Nicolas Hanus
Chairman of the Board Director
mcellier@callandermanagers.lu nhanus@callandermanagers.lu
45

www www.callanderfund.com
callanderfund com
46