GIPS Compliance Verification Statement and Performance Examination Report Broadview Advisors, LLC

Transcription

1 GIPS Compliance Verification Statement and Performance Examination Report Broadview Advisors, LLC 05/31/01 through 06/30/13 METRO DC NEW YORK MORRISTOWN CHICAGO BOSTON LOS ANGELES BOCA RATON RICHMOND CHATTANOOGA DENVER LONDON JERSEY

2 Broadview Advisors, LLC Issued October 1, 2013 GIPS Compliance Verification Statement The following report issued by ACA Verification Services, LLC ( ACA Beacon ) is for a firmwide GIPS Verification of Broadview Advisors, LLC s ( Broadview ) claim of compliance with the Global Investment Performance s ( GIPS standards ) for the period May 31, 2001 through June 30, We have examined whether Broadview (1) complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) designed its policies and procedures to calculate and present performance results in compliance with the GIPS standards for the period May 31, 2001 through June 30, The firm-wide verification does not ensure the accuracy of any specific composite presentation. Broadview s management is responsible for compliance with the GIPS standards and the design of the policies and procedures that present the firm s performance results in accordance with the GIPS standards. ACA Beacon s responsibility is to express an opinion on Broadview s compliance based on its verification procedures. ACA Beacon has completed this firm-wide GIPS Verification in accordance with the required verification procedures set forth in the GIPS standards. It is ACA Beacon s opinion that Broadview has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis. Furthermore, it is ACA Beacon s opinion that Broadview s policies and procedures were designed to calculate and present performance results in compliance with the GIPS standards for the period May 31, 2001 through June 30, In addition to the firm-wide GIPS Verification, ACA Beacon has completed Performance Examinations of the Small/Mid Capitalization Composite for the period December 31, 1996 through June 30, 2013, and the All Cap Composite for the period December 31, 2001 through June 30, ACA Beacon completed these examinations in accordance with the Performance Examination procedures set forth in the GIPS standards. It is ACA Beacon s opinion that the performance results of these composites for the periods mentioned above are presented, in all material respects, in conformity with the GIPS standards. This report of the referenced Performance Examinations does not cover any review of any supplemental information that may be included or attached to the composite presentations and does not relate to any particular composite presentation of Broadview other than the aforementioned composites. ACA Verification Services, LLC

3 Broadview Advisors, LLC Small/Mid Capitalization Composite 12/31/1996 6/30/2013 Year Gross of Fees Net of Fees 1 2 Composite 1 2 Number of Portfolios Dispersion Composite Firm Percentage of Firm NA NA NA 1 NA 8,866,490 NA NA NA NA NA 1 NA 28,669,083 NA NA NA NA NA 2 NA 87,218,922 NA NA NA NA NA 2 NA 306,218,528 NA NA NA NA NA 3 NA 398,159, ,119, NA NA NA 3 NA 631,066, ,174, NA NA NA 2 NA 1,238,937,056 1,263,238, NA NA NA 4 NA 1,177,275,185 1,205,585, NA NA NA 3 NA 1,036,761,683 1,062,966, NA NA NA 4 NA 940,167, ,900, NA NA NA 3 NA 858,948, ,929, NA NA NA 3 NA 359,260, ,895, NA NA NA 3 NA 381,236, ,401, NA NA NA 5 NA 531,022, ,155, NA 531,765, ,979, ,382, ,584, ,399, ,499, Q Q ,371, ,859, : Russell 2500, Primary 2: Russell 2000, Secondary Broadview Advisors, LLC claims compliance with the Global Investment Performance s (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. Broadview Advisors, LLC has been independently verified for the periods 5/31/01-6/30/2013. 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. The Broadview Small/Mid Capitalization Composite has been examined for the periods 12/31/1996-6/30/2013. The verification and performance examination reports are available upon request. Broadview Advisors, LLC is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisors Act of Broadview Advisors, LLC manages equity assets in endowment, defined contribution, sub-advised mutual fund and high net-worth individuals. The firm s separate account fee schedule is as follows: 1.00 for first twenty five million, 0.90 for next twenty five million.

4 Fees may be subject to negotiation where special circumstances warrant. The Small/Mid Capitalization Composite was created beginning in February The composite consists of fully discretionary taxable and tax-exempt small/mid capitalization US equity accounts. No non-fee paying accounts are included in the composite. The Small/Mid Capitalization Equity Composite reflects the time-weighted returns of the individual accounts and asset weighted returns of the composite. All returns are calculated using United States Dollars and are based upon monthly valuations using trade date accounting. Gross of fees returns are calculated gross of management fees and custodial fees and net of transaction costs. Net of fees returns are calculated net of actual management fees and transaction costs and gross of custodial fees. For the pooled investment vehicle, net performance is calculated net of all fees including management, transaction costs, and other expenses incurred by the fund. Dispersion of annual returns is measured by the asset-weighted standard deviation of all accounts included in the composite for the entire year. For years with five or fewer accounts in the composite for the entire year, we do not present dispersion as it is not required. A complete list and description of all composites is available upon request. Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Broadview Advisors LLC was formed in May of 2001 and prior to this date the composite was managed at Fiduciary Management Inc. With the inception of Broadview, all primary decisions makers on the FMI Focus strategy moved to Broadview. Performance of the past firm has been linked to the Broadview Small/Mid Capitalization Composite track record. The Russell 2000 is an unmanaged index generally representative of the US market for small capitalization stocks. The investment strategy of this composite may lead to investments that differ markedly from the benchmark. s may be more volatile than, and/or may not be correlated to, this index. The Russell 2500 is an unmanaged index generally representative of the US market for small to mid-cap segment of the U.S. equity universe, commonly referred to as "smid" cap. The investment strategy of this composite may lead to investments that differ markedly from the benchmark. s may be more volatile than, and/or may not be correlated to, this index. Past performance does not guarantee future results Performance reflects the reinvestment of dividends, capital gains, and other earnings.

5 Year Gross of Fees Net of Fees * Composite Broadview Advisors LLC All Cap Composite 01/01/2002 6/30/2013 Number of Portfolios Dispersion Composite Firm Percentage of Firm NA 14,648, ,174, NA 21,877,440 1,263,238, NA 25,640,765 1,205,585, NA 23,295,919 1,062,966, NA 27,273, ,900, NA 30,462, ,929, NA 21,532, ,895, NA 31,453, ,401, NA 39,923, ,155, NA 42,266, ,979, NA 50,827, ,584, Q NA 57,305, ,499, Q NA 58,613, ,859, *: Russell 3000 Broadview Advisors, LLC claims compliance with the Global Investment Performance s (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. Broadview Advisors, LLC has been independently verified for the periods 05/31/01-6/30/13. 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 deigned to calculate and present performance in compliance with GIPS standards. The Broadview All Capitalization Composite has been examined for the periods 12/31/01-6/30/13. The verification and performance examination reports are available upon request. Broadview Advisors, LLC is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisors Act of Broadview Advisors, LLC manages equity assets in endowment, defined contribution, sub-advised mutual fund and high net-worth individuals. The firm s separate account fee schedule is as follows: 0.90 for first twenty five million, 0.80 for next twenty five million. Fees may be subject to negotiation where special circumstances warrant. The All Capitalization Composite was created beginning March The composite consists of fully discretionary taxable and tax-exempt All Capitalization US equity accounts. No non-fee paying accounts are included in the composite.

6 The All Capitalization Equity Composite reflects the time-weighted returns of the individual accounts and asset weighted returns of the composite. All returns are calculated using United States Dollars and are based upon monthly valuations using trade date accounting. All accounts in this composite are fee paying. Gross of fee returns are calculated gross of management fees and custodial fees and net of transaction costs. Net of fee returns for the period between are calculated net of maximum management fees and transaction costs and gross of custodial fees. Beginning in 2010 net of fee returns are calculated net of actual management fees and transaction costs and gross of custodial fees Individual account returns are time weighted and the All Cap composite return is asset weighted. Dispersion of annual returns is measured by the asset-weighted standard deviation of all accounts included in the composite for the entire year. For years with five or fewer accounts in the composite for the entire year, we do not present dispersion as it is not required. A complete list and description of all composites is available upon request. Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The firm generally requires a minimum of $5 million in assets to establish a discretionary account. High Net Worth individuals may establish an account for less than the $5 million but the firm reserves the right to charge a minimum dollar fee for High Net Worth individuals depending upon the client servicing involved. The minimum account sizes do not apply to new accounts for which there is a corporate, family, or other substantial relationship to existing accounts. In addition, the firm reserves the right to waive the minimum account size and minimum annual fee under certain conditions. The Russell 3000 Index is an unmanaged index generally representative of the broad U.S. equity universe representing approximately 98 of the U.S. market. The investment strategy of this composite may lead to investments that differ markedly from the benchmark. s may be more volatile than, and/or may not be correlated to, this index (for comparative purposes only). Although we have rarely done so in the past, the strategy does allow for the use of short selling in the accounts in this composite. Also, although rarely done so in the past, the portfolios in the composite may also be leveraged from time-to-time to increase equity market exposure.