NFL Capital Accumulation Plan. U.S. Small/Mid Cap Equity Fund FUND SUMMARY

Transcription

1 Underlying Investments 1. LSV Small/Mid Cap Value Equity 2. Jackson Square SMID-Cap Growth Equity 3. Snyder Small Cap Value Strategy FUND SUMMARY March 2017 This Fund Summary provides key information about the ( Fund ). The Fund is a unitized fund, which means interests in the fund are expressed as units of interest in the fund rather than shares in the assets held by the Fund. The Fund pools the assets of several employee benefit plans that participate in the NFL Reciprocal Trust, including this 401(k) plan, for investment purposes. The unit value, or value of each interest in the Fund, is determined on a monthly basis by the trustee for the NFL Reciprocal Trust. This is a customized fund, not a registered mutual fund. It is available only as part of the NFL Reciprocal Trust and is not offered to the general public.

2 Investment Objective and Strategy of the The objective of the ( Fund ) is to provide capital appreciation and income consistent with its current asset allocation. The Fund seeks to achieve its investment objective by investing in the common stocks of companies with market capitalizations between $500 million and $10 billion. The Fund currently employs a mix of growth and value managers. An investment in this Fund should be regarded as involving more risk than an investment in either the Money Market or Fixed Income Funds and may exhibit higher volatility of returns than large cap funds. LSV Asset Management, Snyder Capital Management, and Columbus Circle Investors currently manage the Fund. The target allocation among the managers is established by the NFL Investment Committee. The portfolio will typically be style neutral in relation to the Russell 2500 Index. The target allocation among the managers, which is established and may be tactically adjusted in response to market factors by the NFL Investment Committee, is as follows: : Underlying Target Composition Investments LSV Small/Mid Cap Value Equity 33.33% Jackson Square SMID-Cap Growth Equity 33.34% Snyder Small Cap Value Strategy 33.33% The actual composition of the may change from time to time based on investment experience or due to adjustments made by the NFL Investment Committee. INVESTMENT OBJECTIVES AND STRATEGIES OF UNDERLYING INVESTMENTS: LSV Asset Management manages the LSV Small/Mid Cap Value Equity strategy. As a value manager, LSV Asset Management utilizes proprietary quantitative techniques to rank and select undervalued securities that exhibit near-term appreciation potential. The top 15% of stocks by rank (approximately 200 companies) are optimized for risk control and purchased for portfolios to match the characteristics of a given benchmark. Portfolios typically contain between 125 and 175 issues. Jackson Square Partners, LLC manages The SMID-Cap Growth Equity Portfolio. The investment objective is to seek long-term capital appreciation. The Portfolio invests primarily in common stocks of growth-oriented companies that have long-term capital appreciation potential and expect to grow faster than the U.S. economy. The investible universe consists of companies that, at the time of purchase, have total market capitalizations within the range of market capitalizations of companies in the Russell 2500 Growth Index which also serves as the benchmark. Security selection begins using a bottom-up approach, seeking to select securities of companies that are believed to have attractive end market potential, dominant business models and strong free cash flow generation that are attractively priced compared to the companies intrinsic values. The team also considers a company s operational efficiencies, management s plans for capital allocation and the company s shareholder orientation. All of these factors give the manager insight into the outlook for a company, helping the manager identify companies

3 poised for sustainable free cash flow growth. The manager believes that sustainable free cash flow growth, if it occurs, may result in price appreciation for the company s stock. Snyder Capital Management manages the Snyder Small Cap Value Strategy. Snyder Capital Management is a moderately concentrated, value-oriented, fundamental manager. As part of this desire to be the most knowledgeable outside investor they will not typically invest in high technology companies or banks. This is due to their need for transparency to evaluate the company s fundamentals. Snyder utilizes an extensive network of contacts and the experience of the team members to source ideas for the portfolio. Before an investment is made they will meet with management to evaluate the company s plans to unlock value. Snyder has a long-term investment horizon, which leads to a low level of turnover within the portfolio. Snyder employs a moderately concentrated approach (40-55 holdings) with a focus on high quality names. Expenses of the The Fund and its underlying investments pay certain administrative expenses out of the assets held in them; this "expense ratio" decreases the gross investment return of the Fund. Reported investment returns are net of expenses. There are no front-loads, back-loads or other shareholder-type fees associated with an investment in the Fund. For the 12-month period ended March 31, 2016, the annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment) are as follows: Management fees: 0.80% Other expenses: 0.04% Total Annual Fund Operating Expenses: 0.84% Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other investment alternatives. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your interests in the Fund at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 year 3 years 5 years 10 years $86 $269 $472 $1,076 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund s performance. During the trailing 1 year ending June 30, 2016, the Fund s portfolio turnover rate was 56.06%.

4 Investment Risks of the Returns are not guaranteed. Investments in the Fund carry risks, including capital loss. The underlying managers invest in small/mid-cap US equity markets and investors should expect their capital to be fully exposed to a variety of risks, including the risks listed below: Stock Market Risk: The Fund is exposed to volatility of US small/mid-cap stock market. The prices of stocks held by underlying funds may decline due to general market conditions and other factors, including those directly involving the issuers of securities held by the funds. Geographic Concentration Risk: The underlying funds primarily invest with companies domiciled in the United States of America. Performance is expected to be closely tied to social, political, and economic condition within the United States. Style Concentration Risk: The Fund is invested in stocks of small/mid-cap companies. Consequently there is a risk that the performance of the fund will be significantly different than that of the overall stock market. Interest Rate Risk: Changes in interest rates could have unanticipated impact on stock prices. Investors may lose money if interest rates change. Liquidity Risk: In extreme events, a security held by the Fund may not be easily converted into cash. Derivatives Risk: Managers in the Fund may use derivative instruments for hedging purposes or as part of their investment strategy. Investments in derivatives may lose value due to changes in overall market prices and volatility, changes in interest rates, liquidity conditions of the market, and financial health of the counterparty. Portfolios investing in derivatives could lose more than the principal amount invested.

5 INVESTMENT PERFORMANCE (Returns for 3, 5 & 10 Year periods are annualized) The following charts show the investment performance of the Fund in the past, and are not necessarily an indication of how the Fund will perform in the future. The information provides some indication of the risks of investing in the Fund by showing changes in the Fund s performance from year to year and by showing how the Fund s average annual returns for 1, 3, 5, and 10 years compare with those of a broad measure of market performance. Updated performance information is available at As of 3/31/17 1 Year 3 Year 5 Year 10 Year AACR AACR AACR 20.3% 7.3% 11.6% 8.4% Russell 2500 Index 21.5% 7.4% 12.6% 7.7% *AACR represents Average Annual Compound Return CY % -37.1% 36.7% 30.9% -1.5% 14.7% 34.9% 8.0% -4.0% 18.3% 2.6% Russell 2500 Index 1.4% -36.8% 34.4% 26.7% -2.5% 17.9% 36.8% 7.1% -2.9% 17.6% 3.8% *In the above charts, CY represents Calendar Year to Date (as of 3/31/17). During the periods since inception, the highest return for a calendar quarter was 22.3% (quarter ended September 30, 2009), and the lowest return for a quarter was -23.6% (quarter ended December 31, 2008). Investment Advisor Cambridge Associates recommends investments for the Fund to the NFL Investment Committee, but does not exercise discretionary control over the Fund. The NFL Investment Committee makes the final determination as to the investments of the Fund. Once the Fund's assets are invested in funds or separately managed accounts, the investment of those assets in securities is determined by the investment manager.

6 U.S. SMID Cap (%) Additional Information Additional information on the Fund is available at You may also contact your Human Resources representative for more information. ADDITIONAL PERFORMANCE ANALYTICS As of March 31, 2017 Trailing 5 Year Statistics Monthly U.S. SMID Cap Performance vs. Monthly Russell 2500 Performance $3,500 $3,000 Growth of $1,000 Invested 10.0 $2, $2, Russell 2500 (%) $1,500 $1,000 $500 $0 03/12 03/13 03/14 03/15 03/16 03/17 Rolling 24-Month Correlation to the Russell 2500 Rolling 24-Month Standard Deviation As of 3/31/2017 Summary Statistics U.S. SMID R2500 Top 10 Holdings % of U.S. SMID Average Annual Compound Return GRACO INC 2.4 Annualized Standard Deviation EQUITY COMMONWEALTH 1.9 Max. Monthly Return LOGITECH INTERNATIONAL SA 1.8 Min. Monthly Return COPART INC 1.8 Percent Positive Months 63% 63% J2 GLOBAL INC 1.7 Percent Negative Months 37% 37% HEICO CORP 1.7 Correlation w/ Russell 2500 Index ZEBRA TECHNOLOGIES CP -CL 1.6 Ann. Alpha vs. Russell 2500 Index BLACKBAUD INC 1.6 Beta vs. Russell 2500 Index KAR AUCTION SERVICES INC 1.6 Correlation w/ BC Agg Bond Index DUNKIN' BRANDS GROUP INC 1.5

7 Portfolio Characteristics as of March 31, 2017 Small/Mid Cap U.S. Equity Portfolio Characteristics Small/ M id C ap U.S. Equity R ussell 2500 Index Market Cap ($mil) - Wtd Avg 4, ,586.9 Market Cap ($mil) - Median 2, ,100.8 Trailing P/E - Trailing 12 Mo. Wtd Avg Price/Book - Trailing 12 Mo. Wtd Avg Price/Sales - Trailing 12 Mo. Wtd Avg Earning Growth Rate (%) - Trailing 5yr Wtd Avg Earning Growth Rate (%) - Trailing 10yr Wtd Avg ROE (%) - Trailing 12 Mo. Wtd Avg Dividend Growth Rate (%) - Trailing 5yr Wtd Avg Dividend Growth Rate (%) - Trailing 10yr Wtd Avg Dividend Yield (%) - Wtd Avg Dividend Payout (%) - Wtd Avg Price as % of 12-Month High Beta Number of Holdings in Portfolio ,440.0 Percentage of Market Value Analyzed Portfolio characteristics, with the exception of earnings and dividend growth rates, are calculated such that the portfolio is treated as one security. For example, the price/earnings ratio represents the total market value of the portfolio divided by the sum of the earnings of all stock holdings in the portfolio. Extreme outliers are excluded from characteristics calculations. Earnings and dividend growth rates represent the weighted-average growth rates of the stock holdings in the portfolio. The growth rates are the linear regression of the annual earnings and dividend growth rates over the period. The growth rates are calculated for the longest available time horizon between 6 and 10 years for 10-year growth rates and between 3 and 5 years for 5-year growth rates. Stock holdings without a sufficient history of data or with beginning and ending values that are equal to or less than 0 are excluded. Price as a % of 12-month high is the price of the current holdings divided by the 12-month high price of current holdings. Portfolio beta is calculated relative to the benchmark based on the longest available time horizon up to 3 years. Since index constituents and their relative weights are not constant through time, it is possible the current constituents of the index may have a beta versus the historical index that is not 1.0. Sources: M SCI Inc. and FactSet Fundamentals

8 Allocation (%) Market Capitalization Distribution as of March 31, % 90% Small/Mid Cap U.S. Equity Russell 2500 Index Mega-Cap Large-Cap Mid-Cap Small-Cap Micro-Cap 80% 70% 60% 50% 40% 30% 20% 10% 0% M arket C apitalizatio n (%) Small/ M id C ap U.S. Equity R ussell 2500 Index Mega-Cap (>$50.0B) Large-Cap ($15.0B-$50.0B) Mid-Cap ($2.5B-$15.0B) Small-Cap ($0.5B-$2.5B) Micro-Cap (<$0.5B) M arket C apitalizatio n ($ bil) Average $4.4 $4.6 Median High Value Low Value The five market capitalization segments based on the M SCI All Country World Investable M arket Index are defined as follows: Companies in the top 40% by market capitalization have been termed M ega-cap, companies in the following 20% Large-Cap, companies in the following 30% M id-cap, companies in the following 8% Small-Cap, and companies thereafter M icro-cap. Sources: M SCI Inc. and FactSet Fundamentals

9 Portfolio Sector Allocations as of March 31, 2017 Small/Mid Cap U.S. Equity Small/ M id C ap U.S. Equity A llo catio n R ussell 2500 Index A llo catio n Secto r D ec-31 M ar-31 D ec-31 M ar-31 (%) Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities Real Estate Other Allocation % = Allocation in manager's account or in combined equity account at the beginning and end of the quarter. Allocation percentages include all unanalyzed securities in portfolio. Return % = Weighted-average total return for the quarter. Sources: M SCI Inc. and FactSet Fundamentals. Economic sectors according to Global Industry Classification Standard (GICS ).

10 Top Portfolio Holdings by Size and Contribution as of March 31, 2017 Small/Mid Cap U.S. Equity Security Top 10 Portfolio Holdings by Size of Holding P ercent o f M arket Value Quarterly T o tal R eturn (%) C o ntributio n to P o rtfo lio P erfo rmance (%) GRACO INC * EQUITY COMMONWEALTH LOGITECH INTERNATIONAL SA * COPART INC J2 GLOBAL INC HEICO CORP ZEBRA TECHNOLOGIES CP -CL A BLACKBAUD INC * KAR AUCTION SERVICES INC DUNKIN' BRANDS GROUP INC Total Top 10 by Size of Holding Security Top 5 and Bottom 5 Portfolio Holdings by Contribution P ercent o f M arket Value Quarterly T o tal R eturn (%) C o ntributio n to P o rtfo lio P erfo rmance (%) LOGITECH INTERNATIONAL SA * ENTEGRIS INC GRACO INC * BLACKBAUD INC * MSCI INC Total Top 5 Contributors SALLY BEAUTY HOLDINGS INC CARDTRONICS PLC YELP INC PANDORA MEDIA INC WISDOMTREE INVESTMENTS INC Total Bottom 5 Contributors Note: Top 10 holdings are selected based upon those securities held at both the beginning and end of the period. Securities not held for an entire quarter are excluded from the analysis. Contribution to Portfolio Performance % = security's beginning period allocation in the portfolio * security's quarterly return. * Security ranked in both 'Top 10 by Size of Holding' and 'Top 5 and Bottom 5 by Contribution.' Sources: M SCI Inc. and FactSet Fundamentals