(L-R): Bin Xiao, analyst; Kathy Jacobs, business manager; Sumanta Biswas, vice president & assistant portfolio manager; Bernard Horn, president & portfolio manager; Richard Howe, account manager & analyst; Andry Sutanto, analyst; Kristin Weisker, relationship manager; Bernard Maitai, associate

Overview

Polaris Capital Management, LLC is a global and international value equity manager, serving the investment needs of institutions and individuals since 1995. Polaris’ global value philosophy is a disciplined combination of proprietary investment technology and traditional fundamental research that seeks to identify the most undervalued companies worldwide. As of March 31, 2008, the firm managed $4.0 billion for a growing number of institutions, retirement plans, insurance companies, foundations, endowments, and high-net-worth individuals.

Approach

Polaris Capital Management is built on the belief that companies exist to generate cash flow for their owners. Using a unique three-step process to identify companies with undervalued streams of sustainable cash flow, Polaris develops a dynamic portfolio of 50-100 equally weighted securities from a universe of more than 24,000 companies in 50 countries. The firm's commitment to pure value investing distinguishes it from its peers.

INVESTMENT PROCESS

The firm believes that country and industry factors are important influences on security prices. The first step of the investment process is a proprietary five factor global valuation model that produces a ranking of countries and industries from the most undervalued to the least attractive.

Step two is based on the belief that normal security price fluctuations produce company valuations that can undervalue the cash flow or assets of the firm. Using traditional valuation criteria, Polaris regularly screens a database of more than 24,000 companies to come up with a list of approximately 500 securities with potential for undervalued streams of sustainable cash flow or undervalued assets.

In the final step of this investment process, Polaris’ professionals conduct rigorous fundamental research on the companies identified throughout the investment process. The result is a portfolio of 50-100 companies that are equally weighted, and typically diversified across 15 countries and 15 industries.  Most investments are held for three-to-five years and portfolio turnover averages 30 percent per year. If a company’s valuation falls below target returns or below the rank of an alternative company, it is sold and replaced by a company on Polaris’ “watch-list” of approximately 250 companies. The firm’s commitment to the pure value investment style described above has achieved consistent returns for investors for more than a decade.

Products

The firm offers global and international equity management services as separately managed accounts for institutional clients and high-net-worth individuals. Polaris also offers equity management services to sponsors of pooled funds. Polaris currently manages or sub-advises six pooled funds, including three mutual funds and a Luxembourg registered global value fund for non-U.S. investors. In addition, the firm sub-advises a common trust fund available exclusively to government and Taft Hartley pension plans, and a collective trust fund for qualified pension assets. Polaris also serves as the investment adviser to a limited partnership comprised primarily of demutualized banks, as well as two limited partnerships that invest in international equities.

Organization

Based in Boston, Massachusetts, Polaris Capital Management is an independent organization with complete investment autonomy. The firm’s professionals evaluate investments based on Polaris’ investment criteria and fundamental security analysis. All personnel are strongly encouraged to challenge investment assumptions, company management and investment decisions. The investment team has substantially all of their liquid net worth invested in the funds managed by the firm.

Bernard R. Horn, Jr. founded Polaris in 1995, and serves as President and Chief Investment Officer. He previously held principal and portfolio management positions at Horn & Company and Freedom Capital Management. Mr. Horn earned a Master of Science degree in management from the Alfred P. Sloan School of Management at the Massachusetts Institute of Technology in 1980 (Masters thesis: "The Pricing of Commodity Options" Faculty Advisors: Professors Fischer Black, Robert C. Merton) and a Bachelor of Science degree in Business Administration from Northeastern University in 1978.

Mr. Horn makes final investment decisions and is aided in the research and investment process by a team comprised of:
Sumanta Biswas, CFA, Vice President and Assistant Portfolio Manager
Richard V. Howe, CFA, Analyst and Account Manager
Andry Sutanto, Analyst
Bin Xiao, Analyst

* Before investing you should carefully consider each Fund’s investment objectives, risks, charges and expenses. This and other information is in the Funds’ prospectus, copies of which may be obtained from the following: Polaris Global Value Fund at www.polarisfund.com or (888) 263-5594 and Quant Foreign Value Fund at www.quantfunds.com or (800) 326-2151. Please read the prospectus carefully before you invest. (Not intended as an offer of Quant Foreign Value Fund.)

The Funds invest in securities of foreign issuers, including issuers located in countries with emerging capital markets. Investments in such securities entail certain risks not associated with investments in domestic securities, such as volatility of currency exchange rates, and in some cases, political and economic instability and relatively illiquid markets. Foreside Fund Services, LLC, Member NASD, distributes the Polaris Global Value Fund. U.S. Boston Capital Corporation, Member NASD, distributes the Quant Foreign Value Fund.