Ceredex Value Advisors LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards.  Ceredex has been independently verified for the period March 31, 2008 (the date of the Firm’s founding) through December 31, 2010 by Ashland Partners & Company LLP.  A copy of 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 GIPS standards.  Verification does not ensure the accuracy of any specific composite presentation.

Notes:

1. Ceredex Value Advisors LLC (“Ceredex”) is an SEC registered investment adviser incorporated in 2008 and is a wholly owned subsidiary of RidgeWorth Capital Management, Inc (“RidgeWorth”).  Ceredex was created when all of the investment decision-makers associated with the value equity investment strategies of RidgeWorth became employees of Ceredex.  The staff and decision‑making process remains intact and independent within Ceredex.  For composite reporting purposes, the Firm is defined as all equity portfolios managed by Ceredex.  Composite performance results are linked to performance history generated at RidgeWorth, and Ceredex has records that document and support this performance history.  Prior to March 31, 2008, RidgeWorth Capital Management operated under the name of Trusco Capital Management, Inc.
2. The Mid-Cap Value Strategy composite includes all fully discretionary separately managed investment accounts and registered mutual funds managed in accordance with the mid cap value style.  Under normal circumstances, Mid-Cap Value Portfolios will have at least 80% of their net assets invested in U.S. traded equity securities of mid-cap companies.  U.S. traded equity securities may include American Depositary Receipts (“ADRs”).  Ceredex considers mid-cap companies to be companies with market capitalizations similar to those of companies in the Russell Midcap Value Index.  In selecting investments for the portfolios, Ceredex chooses companies that it believes are undervalued in the market relative to the industry sector and the company’s own valuation history.  The gross of fee return for the mutual funds is calculated by adding back the fund’s total operating expense ratio to the net of fee mutual fund performance.  A complete description of the composite is available on request.
3. The registered mutual fund was added to the composite effective April 1, 2008, immediately after the creation of Ceredex Value Advisors.  Prior to that date the composite consisted of only separately managed accounts.
4. The benchmark for the Mid-Cap Value Strategy composite is the Russell Midcap Value Index.
5. As of December 31, 2011, the three-year annualized standard deviation (using monthly returns) was 23.8 for the composite and 22.8 for the benchmark index.
6. The composite significantly underperformed the index for the 9 month period ending 12/31/02 due to stock selection in the Consumer Discretionary, Financials and Health Care Sectors.  The composite underperformed the index for the 1 year period ending 12/31/03 primarily due to stock selection in the Energy and Materials Sectors.  The composite outperformed in 2007 due to superior asset allocation in Energy, Financials and Industrials; and superior stock selection in Financials, Information Technology and Utilities.  The composite outperformed the index in 2009 primarily due to superior stock selection in Financials, Industrials and Materials; and superior asset allocation in Energy and Utilities.
7. Valuations and returns are computed and stated in U.S. Dollars.
8. Beginning 3/31/2008, composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow of 10% or greater of portfolio assets.
9. The dispersion of annual returns is measured by the standard deviation across equal-weighted portfolio returns represented within the composite for the full year.  Partial year dispersion is measured by the equal-weighted standard deviation of portfolio returns represented in the composite for the partial year period specified.  No dispersion is reported for periods with five or fewer portfolios (shown as N/A).
10. Returns are presented gross and net of management fees and include the reinvestment of all income.  The management fee schedule applicable to mid-cap value accounts is as follows:  0.75% on the first $25 million, 0.65% on the next $25 million, 0.55% on the next $50 million, and 0.50% on all over $100 million.  The minimum annual fee is $15,000.
11. This composite was created March 31, 2008, the inception date of Ceredex, and continues the investment strategy of a composite originally created in 2007.  The composite has performance history with an inception date of April 1, 2002.
12. The minimum portfolio size for the Mid Cap Value Strategy composite is $1 million.  For further information on investment management fees, please refer to Form ADV Part 2.
13. Net of fee performance is calculated assuming a fee of 0.75%, the highest fee for this type of investment account.
14. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
15. A complete list and description of firm composites and performance results is available upon request.
16. Past performance is not indicative of future results and no investment is guaranteed for return of principal and/or return on investments.  All information provided and used in calculations is believed to be correct, but accuracy cannot be guaranteed.  Please consult with a financial professional before investing

© 2012 Ceredex Value Advisors LLC. Ceredex Value Advisors is a registered investment adviser with the SEC and a member of the RidgeWorth Capital Management, Inc. network of investment firms.