(PUB) Investing 2016

23

October 2016

Morningstar FundInvestor

Data through September 30, 2016 FINRA members: For internal or institutional use only. Hotchkis & Wiley Mid-Cap Value A

Ticker HWMAX

Yield 0.1%

Total Assets $2,051 mil

Mstar Category Mid-Cap Value

Benchmark 1: Russell Mid Cap Value TR USD Benchmark 2: S&P 500 TR USD Morningstar Analyst Rating 08-01-16 ´

Investment Style Equity

Historical Profile Return Risk Rating Average High QQ Below Avg

2 2 2 2 2 2 2 2

15.0 20.0

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

Morningstar Pillars Process

10.0

∞ Positive ∞ Positive ∞ Positive ∞ Positive § Negative

Performance

5.0

People Parent

Performance Quartile (within Category)

* ) ) & & ) & & * ) ) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 09-16 29.67 20.37 11.49 17.79 23.80 21.70 28.31 40.17 40.60 30.90 33.30 16.34 -17.19 -43.16 56.03 34.04 -8.82 30.77 42.20 11.90 -12.75 7.77 -3.87 -15.76 -4.71 21.82 9.29 -7.44 12.26 8.75 -2.85 -7.97 -5.95 0.55 -22.68 -6.16 29.57 18.98 -10.94 14.76 9.82 -1.79 -14.13 -0.07 0.00 0.33 0.24 1.19 0.25 0.00 0.30 0.30 0.36 0.09 0.00 16.34 -17.52 -43.40 54.84 33.79 -8.82 30.47 41.91 11.53 -12.84 7.77 0.00 0.10 0.05 0.14 0.04 0.00 0.07 0.08 0.15 0.04 0.00 3.02 4.16 0.04 0.00 0.00 0.00 0.00 0.00 3.97 4.43 0.00 1.27 1.26 1.28 1.40 1.35 1.33 1.35 1.32 1.26 1.25 1.27 0.16 0.19 0.38 0.67 0.03 -0.06 0.28 0.32 0.29 0.10 0.48 41 99 90 3 1 92 2 8 26 94 79

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 09-30-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

22.72 -3.30 4.62 5.33 30.77 17.31 5.33 8.15 6.42 42.20 5.35 5.39 -3.74 4.70 11.90 0.22 -1.92 -11.30 0.07 -12.75

55

45

51

85

67

62

72

66

55

54

42

1,183

628

242

244

255

175

224

662

756

406

313

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 08-31-16 Total Stocks: 58 Share change since 07-31-16

1.23 -3.68 10.52

— —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

YTD Ret % % Assets — 4.74 -7.33 4.49 4.79 3.70 -4.35 3.47 31.59 3.47 -3.02 3.47 -12.65 3.29 -36.26 3.25 -0.49 3.14 — 2.75 4.31 2.70 — 2.69 -10.13 2.54 -7.42 2.33 -7.43 2.30 18.62 2.24 9.54 2.19 — 3.36 — 2.86 158.94 2.81

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

Y Popular Inc

Finan Svcs Technology Finan Svcs Finan Svcs Technology

1 Yr 3 Yr 5 Yr

2.18 1.99

3 Mo 6 Mo

10.52 6.07 6.67 6.46 -2.97 0.06 7.84 -9.42 -7.59 3.84 -6.65 -7.32 18.59 1.21 2.22 6.60 -1.29 -0.64

2 11,052 69 10,646 91 10,784 90 11,197 2 23,457 57 18,949 17 46,534

Y ARRIS International PLC Y Regions Financial Corp Y Citizens Financial Group

High Q

Low High -Avg

High QQQQ

17.32

1 Yr

High Q

10 Yr Incept

6.03 9.87

3 Yr Avg 5 Yr Avg 10 Yr Avg

Y Corning Inc

T NRG Energy Inc Y Kosmos Energy Ltd T Calpine Corp T Office Depot Inc

Utilities Energy Utilities

Other Measures

Standard Index

Best Fit Index

15 Yr Avg 10.79 0.07 3.64

Alpha

-8.3 1.18

-9.2 1.24

Cnsmr Cyc Cnsmr Cyc

Beta

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Y Goodyear Tire & Rubber Co

R-Squared

69

79

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

-0.09 15.86

94

2.04 1.24 1.17

50 42 51

Y Cairn Energy PLC

Energy Industrl Energy

9

Standard Deviation

15.37

Y Navistar International Co

4.79

77

Mean

3.84 0.31

Y Ophir Energy PLC

Sharpe Ratio

Y Willis Towers Watson PLC

Finan Svcs

Potential Capital Gain Exposure: -10% of assets

Y Royal Mail PLC

Industrl

Morningstar's Take by Katie Rushkewicz Reichart, CFA 08-01-16 Hotchkis & Wiley Mid-Cap Value doesn't look good at every turn, but over time it can reward investors who hold on. Despite above-average fees, the fund's consistent investment process and stable and experienced team help it earn a Morningstar Analyst Rating of Bronze. Three managers have led the fund since its 1997 inception, and there's been little turnover on the broader investment team that contributes to all the firm's

Y Bed Bath & Beyond Inc T Whiting Petroleum Corp

Cnsmr Cyc

Energy

recover.Meanwhile,otherpickshaveweighedon results, including Office Depot ODP, whose merger was blocked. Adhering to the process, the managers added to the name when it was down. The fund's fondness for out-of-favor companies and sectors leads to boom-or-bust returns. It underperformed during the 2007-09 financial crisis and posted bottom- decile showings in 2011 and 2015. But when the market turns in its favor, it produces: the fund landed near the top of the category in 2009, 2010, 2012, and 2013. With a process that leads to volatile returns, the fund is not for all investors. It won't help those who can't hang on during stretches of underperformance, as indicated by its poor dollar-weighted returns. Investors with a high risk tolerance can make out better: since inception, which encompasses two bear markets, the fund has topped the benchmark and the category.

Y CIT Group Inc

Finan Svcs Finan Svcs Technology

Y Brown & Brown Inc

Y CDW Corp

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 0.0 Large 14.9 Mid 59.4 Small 19.1 Micro 6.6 Avg $mil: 5,214

Value Blend Growth

Large Mid Small

45.84 0.94 0.00 0.00 17.65 1.64 27.21 1.66 0.98 0.06 45.48 1.43 0.00 0.00 17.07 1.63 8.69 0.80 19.72 2.24 8.67 0.44 1.65 0.47 0.20 0.04 6.82 0.60

offerings. The fund has long followed a contrarian, value- oriented process that, for better and worse, goes its own way rather than closely adhering to the Russell Mid Cap Value Index. The portfolio is indeed cheaper than the benchmarkon traditionalvaluationmetrics,suchasprice/ earnings and price/book. Sector weightings can vary greatly depending on opportunities. The fund gravitated to the beat-up energy sector in 2015 as oil prices slid. The sector overall has weighed on results during the trailing three years through June, a period when the fund landed in the bottom decile of the mid-value Morningstar Category. Despite the sector's rebound in 2016, the fund hasn't seen as big of a bounce, as some of its picks have been slower to

Value Measures

Rel Category

Price/Earnings 13.15

0.77 0.51 0.50 0.62 0.83 1.07 -0.14 -6.13 -5.65 -6.69

Price/Book Price/Sales

0.92 0.59

Price/Cash Flow 4.32 Dividend Yield % 1.99

Growth Measures

% Rel Category

Long-Term Erngs 9.62

Book Value

-0.25 -4.93

Composition - Net

Sales

Cash 1.0 Stocks 99.0 Bonds 0.0 Other 0.0 Foreign 20.8 (% of Stock)

Address:

Hotchkis & Wiley Funds

Minimum Purchase: Min Auto Inv Plan:

$2500 Add: $100 IRA: $1000

Cash Flow -15.46 Historical Erngs -21.54

Los Angeles CA 90017-5439

$2500 Add: $100

866-493-8637

Sales Fees:

5.25%L

Web Address:

www.hwcm.com

Management Fee:

0.75% mx./0.60% mn. Mgt:0.75% Dist:0.25%

Profitability

%

Inception:

01-02-01

Actual Fees:

Return on Equity Return on Assets

3.74 -0.87 2.27

Advisor:

Hotchkis & Wiley Capital Management LLC

Expense Projections: 3Yr:$907 5Yr:$1185 10Yr:$1978

Subadvisor:

None

Income Distribution:

Annually

Net Margin

A

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