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 Small Cap Value Strategy composite includes fully discretionary separately managed investment accounts and registered and unregistered mutual funds managed in accordance with the small cap value style.  Under normal circumstances, Small Cap Value Portfolios will have at least 80% of their net assets invested in U.S. traded equity securities of small cap companies.  U.S. traded equity securities may include American Depositary Receipts (“ADRs”).  Ceredex considers small cap companies to be companies with market capitalizations similar to those of companies in the Russell 2000 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 fund performance.  A complete description of the composite is available on request.
3. The registered and unregistered mutual funds were 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 Small Cap Value Strategy composite includes the performance of the equity portion of balanced accounts.  For the balanced accounts, cash returns have been allocated using a predetermined cash allocation mix approach.  Since January 1, 2006, such “carve-outs” have represented the following percentage of the total market value of the composite:  3.9% as of 12/31/06; there are no carve-outs for subsequent periods.
5. The benchmark for the Small Cap Value Strategy composite is the Russell 2000 Value Index.
6. As of December 31, 2011, the three-year annualized standard deviation (using monthly returns) was 21.3 for the composite and 26.0 for the benchmark index.
7. The composite substantially underperformed in 1998 due to poor stock selection in Consumer Discretionary, Industrials and Materials.  The composite substantially outperformed the index in 2002 due to superior stock selection in the Energy, Information Technology and Consumer Discretionary sectors; it outperformed in 2005 due to overweighting Industrials and superior stock selection in Information Technology, Consumer Discretionary, Industrials and Financials.  The composite outperformed the index in 2009 due to superior stock selection in Financials, Industrials, and Health Care; and superior sector allocation in Financials and Consumer Discretionary.
8. Valuations and returns are computed and stated in U.S. Dollars.
9. 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.
10. The dispersion of annual returns is measured by the equal-weighted standard deviation of portfolio returns represented within the composite for the full year.  Partial year dispersion is measure by the equal-weighted standard deviation of portfolio returns represented in the composite for the partial year period specified.
11. Returns are presented gross and net of management fees and include the reinvestment of all income.  The management fee schedule applicable to small cap equity accounts is as follows:  1.00% on the first $10 million, 0.80% on the next $40 million, and 0.60% on all over $50 million.  The minimum annual fee is $10,000.
12. This composite was created March 31, 2008, the inception date of Ceredex, and continues the investment strategy of a composite originally created in 1998.  The composite has performance history with an inception date of January 1, 1998.
13. The minimum portfolio size for the Small Cap Value Strategy composite is $1 million.  For further information on investment management fees, please refer to Form ADV Part 2.
14. Net of fee performance is calculated assuming the highest level fee for this type of investment account.  Prior to January 1, 2006, the highest level fee was 0.75%, after that date the highest level fee was 1.00%.
15. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
16. A complete list and description of firm composites and performance results is available upon request.
17. 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.