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  • 1. DREMAN VALUE MANAGEMENT CITYWIRE TRADE MISSION USA 2011 June 20th – 22nd 2011DREMAN For Use By Financial Professionals OnlyVALUE MANAGEMENT Not to be shown or distributed to the public. 1
  • 2. U.S. Equity Market Outlook Macro Factors Inflation Watch Commodity Super-cycle US $ Outlook Valuation Large vs. SmallDREMANVALUE MANAGEMENT 2
  • 3. Inflationary Signs Continue to Abound Around the World Prices in China increased 5.4% year over year– the biggest jump since July 2008 Inflation in India rose to almost 9% in March - compared with 8.3% in February. Commodity price pressures are also visible in Europe - where the headline inflation rate for March was revised up to a two year high of 2.7% Walmart’s CEO, Bob Simon, recently stated that inflation is “going to be serious” and Walmart is already “seeing cost increases starting to come through at a pretty rapid rate” Mattel recently reported that it is has passed through a high single-digit percentage increase in prices (which retailers have accepted) - the materials cost of making Ken and Barbie have gone up.DREMANVALUE MANAGEMENT 3
  • 4. Inflation in Commodities 12 month Price Commodities Change% Silver 140.9% Coffee 118.3% Cotton 116.0% Corn 103.9% Tin 71.9% Wheat 51.7% Palladium 40.8% Sugar 34.5% Oil 31.7% Gold 28.3% Aluminum 22.8% Copper 21.1% Cattle (live) 18.9% Hogs 18.5%DREMAN Source: Factset, 04/15/2011VALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 4
  • 5. GOLD Gold , NYMEX Near Term ($/ozt) - Close 1,600 1,400 1,200 1,000 800 600 400 200 0 01 02 03 04 05 06 07 08 09 10DREMAN Source: FactSet, (4/15/2001 to 4/15/2011)VALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 5
  • 6. SILVER 45 Silve r, Londo n AM/PM Fixing ($ /ozt) - Close 40 35 30 25 20 15 10 5 0 01 02 03 04 05 06 07 08 09 10DREMAN Source: FactSet (4/15/2001 to 4/15/2011)VALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 6
  • 7. Extremely Accommodative FED!DREMAN Source: Federal Reserve Bank of St. Louis as of 3/24/10.VALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 7
  • 8. Purchasing Power Parity The Loss of Purchasing Power (Consumer Price Index, 12/31/69–12/31/10) 110 90 70 50 Over the years, inflation rose. As a result, $100 in 1970 is now worth only In 1971, Bretton Woods $17.16. 30 ended and our modern- day paper-currency regime began. 10 9 2 5 8 1 4 7 0 3 6 9 2 5 8 -6 -7 -7 -7 -8 -8 -8 -9 -9 -9 -9 -0 -0 -0 ec ec ec ec ec ec ec ec ec ec ec ec ec ec D D D D D D D D D D D D D DDREMAN Source: Bloomberg, as of 12/31/10.VALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 8
  • 9. Stocks Win By a Mile Total Return Indexes 1802 – 2010 (Inflation Adjusted) One of the easiest ways to invest, buying blue-chip stocks, is also the best - providing strong returns over time. 10000000 1000000 Stocks 100000 10000 1000 Bonds 100 T-Bills 10 1 Gold 0.1 Dollar 0.01 1802 1840 1880 1920 1960 1980 2010DREMAN Past performance is no guarantee of future results. Sources: Dreman Foundation and Jeremy J. Siegel, Stocks for the Long Run (McGraw-Hill, 1994),VALUE MANAGEMENT reproduced with permission of the McGraw-Hill Companies. 9
  • 10. S&P 500 Valuation Based on P/EDREMAN Source: FactsetVALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 10
  • 11. Review of The Dreman Contrarian StrategyDREMANVALUE MANAGEMENT 11
  • 12. The Historical but Largely Unrecognized Advantage of Low-P/E stock Average annual returns by market capitalization broken down by P/E, 1970-2010 19.2% 17.9% 15.4% 15.1% 20% 13.2% 15.7% 13.2% 12.6% 15% 12.2% 10.7% 11.5% 10% 8.8% 8.6% 8.4% 7.6% 5% 0% $250M to $1B $1-2 Billion $2-5 Billion $5-10 Billion >$10 Billion High P/E Market Low P/E Data Source: Compustat North America and FactSet Fundamentals Americas; Date of Data: 1970 – 2010.DREMAN Source: Dreman Value Management, LLC. consent. Performance is historical and does not guarantee future results. Do not reproduce without prior Past performance is no guarantee of future results. This illustration does not represent the performance of any Dreman Portfolio. Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 7VALUE MANAGEMENT 12
  • 13. Cumulative Returns for Value and Growth Strategies Stock Universe: Largest 1500 Companies 1970-2010 $350 Annualized Return $300 Low P/E 15.2% Low P/E -- $327 M Low P/BV 14.3% $250 Low P/BV -- $242 M Low P/CF 14.0% Low P/CF -- $216 M High Yield 12.5% Millions High Yield -- $127 M $200 Market 11.5% Market -- $87 M Low Yield 8.5% Low Yield -- $28 M $150 High P/E 8.3% High P/E -- $26 M High P/BV 8.1% High P/BV -- $24 M $100 High P/CF 7.7% High P/CF -- $21 M $50 $0 70 973 976 979 982 985 988 991 994 997 000 003 006 009 19 1 1 1 1 1 1 1 1 1 2 2 2 2 In addition to low P/E, strategies that employ low price-to-cash flow (P/CF), low price-to-book value (P/BV), or high yield (low price-to-dividend, or P/D) also outperform the market. This chart shows the results of investing $1,000,000 at the beginning of 1970 and rebalancing annually for the following 41 years, reinvesting dividends. The initial investment would have grown to well over $200 million in low P/E, P/BV or P/CF stocks, and to $127 million in stocks with the highest dividend yield, compared to only $87 million for the market. These auxiliary contrarian measures figure prominently in DVM’s investment decision process.DREMAN Data Source: Compustat North America and FactSet Fundamentals Americas; Date of Data: 1970 – 2010. Performance is historical and does not 8VALUE MANAGEMENT guarantee future results. Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 13
  • 14. Contrarian Performance in Market Downturns Returns in 51 down-market quarters, 1970–2010 (Stock Universe: Compustat Largest 1500 Companies: 1970-2010) 0%Average Quarterly Return -2% -4% -3.48 -5.22 -6% -5.42 -7.11 -8% -7.58 -10% Low P/E Low P/CF Low P/BV Low P/D S&P 500DREMAN Data Source: Compustat North America and FactSet Fundamentals Americas; Date of Data: 1970 – 2010. 9VALUE MANAGEMENT Do not reproduce without prior consent. Performance is historical and does not guarantee future results. 14
  • 15. Impact of All Positive and Negative Surprises Stock Universe: Compustat Largest 1500 Companies 1973 – 2010 1 Year 10% 6.1% Negative Market-Adjusted Return 5% Surprises 1.3% 0.0% 0% 0% = Market Return -5% Positive Surprises -7.0% -10% -15% Lowest-P/E Quintile Highest-P/E Quintile Dreman Value Management takes advantage of the high rate of analyst forecast error by positioning in out-of-favor, low P/E stocks. This is because positive and negative surprises affect “best” (high P/E) and “worst” (low P/E) stocks in a diametrically opposite manner. Following a surprise quarter, low P/E stocks with positive surprises outperform the market by 6.1% in the following year. But positive surprises have a far less significant effect on favorite stocks — returning 0.0% in the following year. Conversely, negative surprises are devastating to high P/E stocks (7.0% below market after one year), but go essentially unnoticed by low P/E stocks. The net result is that out-of-favor, low P/E stocks outperform higher P/E stocks over time.DREMAN Data Sources: First Call Consensus Estimates, I/B/E/S, Compustat North America, FactSet Fundamentals Americas, and FactSet Estimates; Date of Data: Quarter 1, 1973 – Quarter 4, 2010. 6VALUE MANAGEMENT Do not reproduce without prior consent. Performance is historical and is not indicative of future results. 15
  • 16. Forecast Error as a Percent of Reported Earnings 1973 – 2010 80% Average Analysts Error: 40% 65 Median Analysts Error: 38% 60% 57 5252 54 5250Forecast Error 50 48 47 45 43 45 41 42 42 40 37 40 40% 3336 38 35 31 34 3434 35 3132 30 3030 30 29 27 27 25 20% 0% 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 Source: Updated from Contrarian Investment Strategies: The Next Generation, by David Dreman, 1998, Simon and Schuster. Data Sources: First Call Consensus Estimates, I/B/E/S, and A-N Research Corp; Date of Data: Quarter 1, 1973 – Quarter 4, 2010DREMAN Source: Dreman Value Management, LLC. Past performance is no guarantee of future results. This illustration does not represent the 4 VALUE MANAGEMENT performance of any Dreman Portfolio. Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 16
  • 17. The Probability Game 1973 – 2010 The Chances of a Stock Surviving Without a 5% Earnings Surprise Any Surprise Negative Surprise Positive Surprise 1 Quarter 30% 66% 62% 4 Quarters 1/131 1/5 1/7 10 Quarters 1/197,500 1/61 1/113 20 Quarters 1/39 Billion 1/3,800 1/12,700DREMAN Source: First Call Consensus Estimates, I/B/E/S International Data, and A-N Research Corp; Date of Data: Quarter 1, 1973 – Quarter 4, 2010.VALUE MANAGEMENT Do not reproduce without prior consent 17
  • 18. Benefitting from Investor Over-reaction* Total Return After Crisis Market Low After Crisis 1 Year Later 2 Years Later Berlin Blockade 6/13/49 46.10% 70.10% Korean War 7/13/50 34.8 53.5 Cuban Missile Crisis 6/26/62 37.3 67.8 Kennedy Assassination 11/22/1963 30.2 44.8 Gulf of Tonkin 6/8/64 16.1 20.6 1969 Stock Market Break 5/26/70 49.6 69.3 1973–74 Stock Market Break 12/6/74 47.8 82.4 Iran Hostage/Oil Crisis 4/21/80 37.5 22.2 1987 Stock Market Crash 10/19/1987 28.9 69.6 1990 Persian Gulf War 10/11/1990 29.2 39.6 Russian Bond Default 8/31/98 46.1 53.6 Hi-Tech-Dot.Com Crash 10/9/02 36.1 44.4 2008-09 Liquidity Crisis 3/5/09 65.0 95.1 Average Return 38.80% 56.40% *Chart represents performance of the Dow Jones Industrial Average through 12 major postwar crises. The Dow Jones Industrial Average (DJIA) is generally accepted as a measure of US stock market performance. Returns assume reinvestment of all distributions, and, unlike fund returns, do not reflect fees or expenses. It is not possible to invest directly in the DJIA. The original chart can be found in Contrarian Investment Strategies: The Next Generation, 1998, by David Dreman.DREMAN Source: Dreman Value Management, LLC. Past performance is no guarantee of future results. This illustration does not represent the performance of any Dreman Portfolio. Property of Dreman Value Management, LLC. Do not reproduce without prior consent.VALUE MANAGEMENT 18
  • 19. Dreman Investment ProcessDREMANVALUE MANAGEMENT 19
  • 20. Three Sources of Alpha Exploit Information Better “Model” Exploit Behavior Quant Managers Traditional Managers Behavioral ManagersDREMANVALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 20
  • 21. Investment Process Drivers Disciplined Investment Process Multiple Driven: Low P/E, Low P/CF, Low P/B, Low P/S Dividend Yield Strong Financial Condition Broad Industry DiversificationDREMANVALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 21
  • 22. Dreman Investment Process Screen value universe with market cap > $8 billion Low P/E by industry Apply quantitative filter Price momentum Earnings revision Conduct fundamental research • Analyze financial data Earnings/cash flow/ROIC Balance sheet Business model Construct portfolio Valuation + judgment Stock selectionDREMANVALUE MANAGEMENT Property of Dreman Value Management, LLC. Do not reproduce without prior consent. 22
  • 23. CHARACTERISTICS & PERFORMANCEDREMANVALUE MANAGEMENT 23
  • 24. Dreman Value Equity Composite Portfolio Structure As of March 31, 2011 Value Equity Russell 3000 Value ® Number of Holdings 50 1,944 Weighted Avg. Market Capitalization ($mm) 62,972 67,369 Dividend Yield 2.3% 2.1% P/E Ratio NTM (Median) 11.44x 14.91x Top Ten Holdings Sector Weightings Value Russell Bank of America Corp. 2.9% Equity 3000® Value Consumer Discretionary 9.4% 8.1% BP PLC ADS 2.7% Consumer Staples 8.6% 8.8% ConocoPhillips 2.4% Energy 17.4% 13.4% Altria Group Inc. 2.4% Financials 23.9% 27.7% Citigroup Inc. 2.4% Health Care 12.7% 11.8% Anadarko Petroleum Corp. 2.4% Industrials 6.2% 9.8% Apache Corp. 2.3% Information Technology 8.0% 5.7% Pfizer Inc. 2.3% Materials 7.2% 3.5% Transocean Ltd. 2.3% Telecommunication Services 2.1% 4.7% Utilities 3.9% 6.6% Wells Fargo & Co. 2.3% Cash 0.7% -- Total 24.4% Total 100.0% 100.0% Source: FactSet. Please note that the information presented above is intended to supplement the full composite presentation, which can be found in the appendix. Data may be subject to change. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The above characteristics are from a representative portfolio. Actual account characteristics may differ due to individual account restrictions and limitations.DREMANVALUE MANAGEMENT 24
  • 25. Dreman Value Equity Composite Annualized Performance As of March 31, 2011 45% 41.6% 40.5% 40% 33.6% 35% 30% 25% 18.6% 17.5% 20% 15.6% 15% 10% 5% 3.3% 2.4% 1.1% 1.2% 0.3% 0% -2.0% -5% 1 Year 2 Year 3 Year Since Inception (11/30/2007) ® Dreman Value Equity (Gross of Fees) Dreman Value Equity (Net of Fees) Russell 3000 Value Source: CAPS 4.0. Past performance is not indicative of future results. Please refer to the full disclosure presentation, which can be found in the appendix.DREMANVALUE MANAGEMENT 25
  • 26. International Value Composite Portfolio Structure As of March 31, 2011 International Value Russell Global x US® Value Number of Holdings 51 4,761 Weighted Avg. Market Capitalization ($mm) 67,837 41,671 Dividend Yield 3.6% 3.1% P/E Ratio - NTM (median) 10.13x 11.60x Top Ten Holdings Sector Weightings International Russell Global Value x US® Value BP PLC 2.6% Consumer Discretionary 1.5% 8.6% ING Groep N.V. 2.2% Consumer Staples 8.1% 4.5% Deutsche Bank AG 2.2% Energy 20.6% 14.9% Banco Santander S.A. 2.1% Financials 22.2% 29.2% 2.1% Health Care 11.7% 5.1% Unilever PLC Industrials 9.8% 11.2% Statoil ASA 2.1% Information Technology 3.2% 3.8% British American Tobacco PLC 2.1% 11.2% 9.0% Materials Total S.A. 2.1% Telecommunication Services 9.5% 7.1% HSBC Holdings PLC 2.1% Utilities 1.3% 6.5% Covidien PLC 2.0% Cash 0.6% -- Total 21.6% Total 100.0% 100.0% Source: FactSet. Please note that the information presented above is intended to supplement the full disclosure presentation, which can be found in the appendix. Data may be subject to change. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The above characteristics are from a representative portfolio. Actual account characteristics may differ due to individual account restrictions and limitations.DREMANVALUE MANAGEMENT 26
  • 27. International Value Composite Portfolio Structure As of March 31, 2011 Top 10 Country Breakdown United Kingdom 29.6% Spain 4.2% Canada 9.4% France 4.1% Germany 8.1% Russia 4.1% Japan 5.8% Hong Kong 4.0% Netherlands 4.3% Australia 3.8% Total 77.4% Regional Breakdown Western Europe 61.9% Eastern Europe 4.1% Pacific Rim 18.7% South America 3.3% North America 9.4% Middle East 1.9% Source: FactSet. Please note that the information presented above is intended to supplement the full disclosure presentation, which can be found in the appendix. Data may be subject to change. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The above characteristics are from a representative portfolio. Actual account characteristics may differ due to individual account restrictions and limitations.DREMANVALUE MANAGEMENT 27
  • 28. International Value Composite Annualized Performance As of March 31, 2011 42.8% 45% 41.6% 40% 35.9% 35% 30.4% 29.3% 30% 25% 21.8% 20% 15.8% 14.9% 15% 12.3% 10% 5% 0% 1 Year 2 Year Inception (10/31/2008) Dreman International Value (Gross) Dreman International Value (Net) Russell Global x-US Value TR ® Source: CAPS 4.0. Past performance is not indicative of future results. Please refer to the full disclosure presentation, which can be found in the appendix.DREMANVALUE MANAGEMENT 28
  • 29. Large Cap Value Composite Portfolio Structure As of March 31, 2011 Large Cap Value Russell 1000® Value Number of Holdings 43 665 Weighted Avg. Market Capitalization ($mm) 78,555 73,317 Dividend Yield 1.8% 2.1% P/E Ratio NTM (Median) 11.0x 14.5x Sector Weightings Top Ten Holdings Large Cap Russell Value 1000® Value Anadarko Petroleum Corp. 5.3% Consumer Discretionary 6.8% 8.0% Devon Energy Corp. 5.0% Consumer Staples 5.1% 9.4% Apache Corp. 4.4% Energy 28.4% 13.8% Eaton Corp. 3.7% Financials 23.4% 26.9% Pfizer Inc. 3.6% Health Care 11.8% 12.4% ConocoPhillips 3.4% Industrials 14.3% 9.4% Information Technology 5.0% 5.3% Wells Fargo & Co. 3.2% Materials 4.1% 3.2% BHP Billiton Ltd. ADS 3.2% Telecommunication Services -- 5.1% General Electric Co. 2.9% Utilities -- 6.6% Altria Group Inc. 2.9% Cash 1.2% -- Total 37.6% Total 100.0% 100.0% Source: FactSet. Please note that the information presented above is intended to supplement the full disclosure presentation, which can be found in the appendix. Data may be subject to change. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The above characteristics are from a representative portfolio. Actual account characteristics may differ due to individual account restrictions and limitations.DREMANVALUE MANAGEMENT 29
  • 30. Large Cap Value Composite Annualized Performance As of March 31, 2011 Dreman Value 20% Management & predecessor firms 14.0% 15.2%15.7% 15.1% 15% 10.9% 9.9% 10.3% 9.3% 10% 4.6% 4.5% 2.8% 4.5% 5% 3.5% 2.5% 3.8% 2.6% 3.3% 2.4% 1.4% 0.6% 0.0% 0% -1.0% -1.0% -2.0% -5% 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr Since Inception (January 1991) ® Dreman Large Cap Value (Gross) Dreman Large Cap Value (Net) Russell 1000 Value Index S&P 500 Source: CAPS 4.0. Past performance is not indicative of future results. Please refer to the full disclosure presentation, which can be found in the appendix.DREMANVALUE MANAGEMENT 30
  • 31. Mid Cap Value Composite Portfolio Structure As of March 31, 2011 ® Mid Cap Value Russell Midcap Value Number of Holdings 68 536 Weighted Avg. Market Capitalization ($mm) 8,757 8,170 Dividend Yield 2.0% 1.9% P/E Ratio NTM (Median) 12.15x 14.90x Top Ten Holdings Sector Weightings Mid Cap Russell Discover Financial Services 1.7% Value Midcap® Value Biogen Idec Inc. 1.7% Consumer Discretionary 10.1% 10.9% Consumer Staples 6.6% 6.4% Arrow Electronics Inc. 1.6% Energy 10.1% 12.3% Zimmer Holdings Inc. 1.6% 23.5% 29.0% Financials ENSCO PLC ADS 1.6% Health Care 9.3% 5.4% Norfolk Southern Corp. 1.6% Industrials 12.1% 10.7% Big Lots Inc. 1.6% Information Technology 15.1% 6.3% Lorillard Inc. 1.6% Materials 5.7% 5.4% CIGNA Corp. 1.6% Telecommunication Services -- 1.9% Ultra Petroleum Corp. 1.6% Utilities 5.9% 11.7% Cash 1.6% -- Total 16.2% Total 100.0% 100.0% Source: FactSet. Please note that the information presented above is intended to supplement the full disclosure presentation, which can be found in the appendix. Data may be subject to change. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The above characteristics are from a representative portfolio. Actual account characteristics may differ due to individual account restrictions and limitations.DREMANVALUE MANAGEMENT 31
  • 32. Mid Cap Value Composite Annualized Performance As of March 31, 2011 25% 20.2% 22.3% 21.3% 20% 15% 9.8% 9.3% 10% 8.7% 8.7% 8.2%8.2% 6.6% 6.2% 5.2% 5.7% 4.7%4.0% 5% 0% 1 Year 3 Year 5 Year 7 Year Since Inception (January 2004) ® Dreman Mid Cap Value (Gross) Dreman Mid Cap Value (Net) Russell Midcap Value Source: CAPS 4.0. Past performance is not indicative of future results. Please refer to the full disclosure presentation, which can be found in the appendix.DREMANVALUE MANAGEMENT 32
  • 33. Small-Mid Cap Value Composite Portfolio Structure As of March 31, 2011 Small-Mid Cap Value Russell 2500® Value Number of Holdings 77 1,623 Weighted Avg. Market Capitalization ($mm) 3,629 2,860 Dividend Yield 1.7% 1.8% P/E Ratio NTM (Median) 12.44x 15.44x Top Ten Holdings Sector Weightings Small-Mid Russell Superior Energy Services Inc. 1.6% Cap Value 2500® Value Atwood Oceanics Inc. 1.5% Consumer Discretionary 13.1% 9.7% Lubrizol Corp. 1.5% Consumer Staples 3.9% 3.3% Energy 11.9% 9.9% Textainer Group Holdings Ltd. 1.5% Financials 17.3% 31.5% Crane Co. 1.5% Health Care 9.5% 6.0% IAMGOLD Corp. 1.4% Industrials 10.5% 12.1% Hubbell Inc. (Cl B) 1.4% Information Technology 14.9% 8.6% DST Systems Inc. 1.4% Materials 8.0% 7.6% Coeur dAlene Mines Corp. 1.4% Telecommunication Services -- 1.1% Cal Dive International Inc. 1.4% Utilities 6.1% 10.2% Cash 4.8% -- Total 14.6% Total 100.0% 100.0% Source: FactSet. Please note that the information presented above is intended to supplement the full disclosure presentation, which can be found in the appendix. Data may be subject to change. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The above characteristics are from a representative portfolio. Actual account characteristics may differ due to individual account restrictions and limitations.DREMANVALUE MANAGEMENT 33
  • 34. Small-Mid Cap Value Composite Annualized Performance As of March 31, 2011 30% 25.5% 24.2% 22.7% 20% 9.7% 8.6% 10% 8.0% 6.2% 5.1% 2.8% 0% 1 Year 3 Year Since Inception (November 2006) ® Dreman Small-Mid Cap Value (Gross) Dreman Small-Mid Cap Value (Net) Russell 2500 Value Source: CAPS 4.0. Past performance is not indicative of future results. Please refer to the full disclosure presentation, which can be found in the appendix.DREMANVALUE MANAGEMENT 34
  • 35. Institutional Small Cap Value Composite Portfolio Structure As of March 31, 2011 Institutional Small Cap Value Russell 2000 Value ® Number of Holdings 104 1,279 Weighted Avg. Market Capitalization ($mm) 1,899 1,226 Dividend Yield 1.7% 1.9% P/E Ratio NTM (Median) 14.14x 15.55x Top Ten Holdings Sector Weightings Institutional Russell Small Cap Value 2000® Value New Gold Inc. 1.4% Consumer Discretionary 13.3% 9.4% Gammon Gold Inc. 1.2% Consumer Staples 3.5% 3.0% GATX Corp. 1.2% Energy 7.4% 8.6% EnerSys Inc. 1.2% Financials 21.3% 36.1% Atwood Oceanics Inc. 1.2% Health Care 10.1% 5.8% Wolverine World Wide Inc. 1.2% Industrials 16.3% 14.5% Brinks Co. 1.2% Information Technology 12.4% 9.5% Materials 6.3% 6.6% HealthSpring Inc. 1.2% Telecommunication Services -- 0.5% Brinker International Inc. 1.2% Utilities 5.9% 6.1% Superior Energy Services Inc. 1.2% Cash 3.7% -- Total 12.2% Total 100.0% 100.0% Source: FactSet. Please note that the information presented above is intended to supplement the full disclosure presentation, which can be found in the appendix. Data may be subject to change. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The above characteristics are from a representative portfolio. Actual account characteristics may differ due to individual account restrictions and limitations.DREMANVALUE MANAGEMENT 35
  • 36. Institutional Small Cap Value Composite Annualized Performance As of March 31, 2011 Dreman Value 25% Management & predecessor firms 18.3% 20.6% 19.4% 20% 15.5% 14.4% 15% 12.9% 12.1% 11.7% 11.7% 11.0% 9.6% 9.0% 10% 8.5% 6.8% 6.9% 5.8% 6.1% 5% 2.2% 0% 1 Year 3 Year 5 Year 7 Year 10 Year Since Inception (June 1991) Dreman Institutional Small Cap Value (Gross of Fees) Dreman Institutional Small Cap Value (Net of Fees) ® Russell 2000 Value Source: CAPS 4.0. Past performance is not indicative of future results. Please refer to the full disclosure presentation, which can be found in the appendix.DREMANVALUE MANAGEMENT 36
  • 37. APPENDIXDREMANVALUE MANAGEMENT 37
  • 38. Dreman Value Equity Composite Historical Performance Total Gross-of- Net-of- Russell Com posite Total Firm Fees Fees 3000® Com posite Benchm ark Num ber Internal Assets % Assets Return Return Value 3-Yr St. Dev 3-Yr St. Dev of Dispersion* ($ USD of Firm ($ USD Period (%) (%) (%) (%) (%) Portfolios (%) Million) Assets Millions) 11/2007 - 0.19 0.12 -0.96 1 9.7 0.06 17,066 12/2007+ 2008 -39.1 -39.7 -36.3 1 5.8 0.07 7,747 2009 32.7 31.6 19.8 3 22.5 0.53 4,276 2010 22.6 21.6 16.2 27.7 23.5 2 16.2 0.33 4,925 *Internal dispersio n is calculated using the asset-weighted standard Annualized deviatio n o f all po rtfo lio s that were included fo r the entire year. Internal -0.2 -1.1 -4.1 dispersio n is no t presented fo r years when there were 5 po rtfo lio s o r less in Return** the co mpo site. Quarterly & Annualized Performance % (As of March 31, 2011) Inception 2Q10 3Q10 4Q10 1Q11 1 Year 3 Year 11/2007 Dreman Value Equity (Gross of Fees) -11.3 15.1 10.7 4.9 18.6 3.3 1.2 Dreman Value Equity (Net of Fees) -11.5 14.9 10.4 4.6 17.5 2.4 0.3 Russell 3000 Value® -11.1 10.1 10.9 6.5 15.6 1.1 -2.0 Source: CAPS 4.0. Past performance is not indicative of future results. .+ + Annualized Return performance includes returns from when the composite was created and incepted on November 30, 2007. +Partial year performance.DREMANVALUE MANAGEMENT 38
  • 39. Dreman Value Equity Composite Performance Disclosures Dreman Value Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in compliance with the GIPS standards. Dreman ValueManagement has been independently verified for the periods July 1, 1997- June 30, 2010. Beginning July 1, 2005 Dreman has been verified by Ashland Partners & Company LLP. Verificationassesses 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 tocalculate and present performance in compliance with the GIPS standards. The Dreman Value Equity composite has been examined for the periods November 3, 2007 – June 30, 2010. Theverification and performance examination reports are available upon request.1. DVM is a division of Dreman Value Management, L.L.C. (“Dreman”), an independent investment management firm and registered advisor established on July 1, 1997. DVM manages a variety of assets, including equities and fixed income among others. For the period from 1991 through June 30, 1997, David Dreman was the Chief Investment Officer of Dreman’s predecessor firm and was responsible for executing all investment management decisions. Performance returns for periods prior to July 1, 1997 is from accounts maintained by DVM’s predecessor firm. Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. Effective June 30, 2009, the methodology used to determine total composite assets, number of portfolios and percent of firm assets has changed. The new method of calculation is based on end of period assets whereas the previous method used beginning of next period assets. This change has been made due to an upgrade in the program used to calculated composite performance. This change effects all time periods beginning July 1, 2009. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.2. DVM’s Value Equity Composite began November 2007. This Composite includes all of the Firm’s accounts or portfolios that are managed by the Firm on a fully discretionary basis in an All Capitalization trading style (no account minimum), and without regard to tax sensitivity. Fully discretionary accounts include accounts that have investment restrictions, where the restriction accounts for less than 5% of the total portfolio value. Portfolios within the composite generally invest in securities with below market P/E ratios and market capitalizations greater than $1 billion.3. The Dreman Value Equity composite benchmark is the Russell 3000® Value Index. The Russell 3000® Value Index measures the performance of those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. The Firm maintains a complete list and description of all composites, which is available upon request.4. Valuations are computed and performance is reported in U.S. Dollars.5. Returns are presented gross and net of management fees and include the reinvestment of all income. Gross-of-fees performance returns are presented before management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Net-of-fees performance returns are calculated by deducting the highest fee of 0.2188% from the quarterly gross composite return. The annual fee schedule is as follows: 0.75% on the first $20,000,000, 0.70% on the next $30,000,000 and 0.65% on assets greater than $50,000,000. Additional information regarding polices for calculating and reporting returns is available upon request. Please refer to the ADV Part II for all composite fee schedules. Actual investment advisory fees incurred by clients may vary.6. DVM’s Value Equity Discretionary composite was incepted and created on November 30, 2007. Prior to July 1, 2010 the composite was known as the Dreman All Cap Value Composite. The firm maintains a complete list and description of all composites, which is available upon request.7. Internal dispersion is calculated using the asset weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. For those years when less than five portfolios were included in the composite for the full year, no dispersion measure is presented.8. The three year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period.The performance data quoted above represents past performance. Past performance is not indicative of future results, and periodically, current performance may be lower or higher than theperformance data quoted. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual accountperformance may differ due to individual account restrictions and limitations. To obtain the most recent month-end performance, please contact us at rfi@dreman.com or 1.800.952.6667. This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers. DREMAN VALUE MANAGEMENT 39
  • 40. International Value Composite Quarterly & Annualized Performance (%) As of March 31, 2011 Total Gross-of- Net-of- Russell Com posite Total Firm Fees Fees Global® x- Com posite Benchm ark Num ber Internal Assets % Assets Return Return US Value 3-Yr St Dev 3-Yr St Dev of Dispersion* ($ USD of Firm ($ USD Period (%) (%) (%) (%) (%) Portfolios (%) Million) Assets Millions) 10/2008 - 4.6 4.5 -0.6 1 0.1 0.00 7,747 12/2008+ 2009 54.2 53.0 41.1 1 0.2 0.00 4,276 2010 9.3 8.4 10.2 2 56.6 1.15 4,925 *Internal dispersio n is calculated using the asset-weighted standard deviatio n Annualized 30.0 28.9 22.3 o f all po rtfo lio s that were included fo r the entire year. Internal dispersio n is no t Return** presented fo r years when there were 5 po rtfo lio s o r less in the co mpo site. Quarterly & Annualized Performance % (As of March 31, 2011) Inception 2Q10 3Q10 4Q10 1Q11 1 Year 2 Year (10/31/2008) Dreman International Value (Gross) -13.5 15.8 7.4 7.7 15.8 42.8 30.4 Dreman International Value (Net) -13.7 15.5 7.2 7.5 14.9 41.6 29.3 ® Russel Global x-US Value -13.5 16.2 7.3 4.2 12.3 35.9 21.8 Source: CAPS 4.0. Performance is historical and does not guarantee future results. **Annualized Return performance includes returns from when the composite was created and incepted on October 31, 2008. +Partial year performance.DREMANVALUE MANAGEMENT 40
  • 41. International Value Composite Performance Disclosures Dreman Value Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in compliance with the GIPS standards. Dreman ValueManagement has been independently verified for the periods July 1, 1997- June 30, 2010. Beginning July 1, 2005 Dreman has been verified by Ashland Partners & Company LLP. Verificationassesses 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 tocalculate and present performance in compliance with the GIPS standards. The Dreman International Value composite has been examined for the periods November 1, 2008 – June 30, 2010. Theverification and performance examination reports are available upon request.1. DVM is a division of Dreman Value Management, L.L.C. (“Dreman”), an independent investment management firm and registered advisor established on July 1, 1997. DVM manages a variety of assets, including equities and fixed income among others. For the period from 1991 through June 30, 1997, David Dreman was the Chief Investment Officer of Dreman’s predecessor firm and was responsible for executing all investment management decisions. Performance returns for periods prior to July 1, 1997 is from accounts maintained by DVM’s predecessor firm. Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.2. The Dreman International Value composite began on October 31, 2008. This Composite includes all of the Firm’s accounts or portfolios that are managed by the Firm on a fully discretionary basis in an International value trading style (no account minimum), and without regard to tax sensitivity. Fully discretionary accounts include accounts that have investment restrictions, where the restriction accounts for less than 5% of the total portfolio value. Portfolios within this composite usually invest 80% or more of its assets in equity securities of issuers located outside of the US, or which derive a significant portion of their business or profits from outside the US.3. The International Value composite benchmark is the Russell Global® x-US Value Index. The Russell Global® x-US Value Index measures the performance of those Russell Global companies with lower price-to-book ratios and lower forecasted growth values. The Firm maintains a complete list and description of all composites, which is available upon request. Returns for the Russell Global® x-US Value Index are presented net of non-reclaimable withholding taxes. Taxes vary according to a company’s country of incorporation within the index. The tax rate applied is the rate applied to non-resident institutions that do not benefit from taxation treaties. Russell uses Exchange Data International (Global Tax) to determine country tax rates. The exchange rate source for the benchmark is Ex Shares.4. Valuations are computed and performance is reported in U.S. Dollars.5. Returns are presented gross and net of management fees and include the reinvestment of all income. Gross-of-fees performance returns are presented before management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Net-of-fees performance returns are calculated by deducting the highest fee of 0.2125% from the quarterly gross composite return. The annual fee schedule is as follows: 0.85% on the first $20,000,000, 0.80% on the next $30,000,000 and 0.75% on assets greater than $50,000,000. Additional information regarding polices for calculating and reporting returns is available upon request. Please refer to the ADV Part II for all composite fee schedules. Actual investment advisory fees incurred by clients may vary.6. DVM’s International Value Discretionary composite was incepted and created on October 31, 2008. The firm maintains a complete list and description of all composites, which is available upon request.7. Internal dispersion is calculated using the asset weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. For those years when less than five portfolios were included in the composite for the full year, no dispersion measure is presented.8. The three year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The performance data quoted above represents past performance. Past performance is not indicative of future results, and periodically, current performance may be lower or higher than the performance data quoted. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual account performance may differ due to individual account restrictions and limitations. To obtain the most recent month-end performance, please contact us at rfi@dreman.com or 1.800.952.6667. This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers.DREMAN VALUE MANAGEMENT 41
  • 42. Large Cap Value Composite Historical Performance Total Gross-of- Net-of- Russell Russell Com posite Total Firm Fees Fees 1000® Com posite 1000® Num ber Internal Assets % Assets ® Return Return Value S&P 500 3-Yr St. Dev Value 3-Yr of Dispersion* ($ USD of Firm ($ USD Period (%) (%) (%) (%) (%) St. Dev (%) Portfolios (%) Million) Assets Millions) 2001 2.7 1.7 -5.6 -11.9 17.0 14.7 9 0.6 5,365 87.8 5,978 2002 -17.2 -18.1 -15.5 -22.1 20.2 17.0 9 0.3 4,787 77.8 6,246 2003 32.6 31.4 30.0 28.7 17.0 16.0 9 0.4 6,592 69.9 8,928 2004 14.5 13.4 16.5 10.9 16.5 14.8 9 0.2 7,877 60.6 12,519 2005 8.8 7.7 7.1 4.9 10.2 9.5 20 0.2 9,335 61.9 14,338 2006+ 18.6 17.5 22.3 15.8 6.7 6.7 23 0.3 11,560 59.4 19,191 2007 -0.4 -1.4 -0.2 5.5 7.6 8.1 23 0.7 10,094 61.0 17,066 2008 -44.3 -45.0 -36.9 -37.0 16.5 15.4 8 0.3 4,007 52.7 7,747 2009 28.2 26.9 19.7 26.5 23.7 21.1 16 669 15.6 4,276 2010 15.8 14.7 15.5 15.1 26.6 23.2 12 0.2 728 14.8 4,925 *Internal dispersio n is calculated using the asset-weighted standard deviatio n Annualized 3.2 2.2 3.3 1.4 o f all po rtfo lio s that were included fo r the entire year. Internal dispersio n is no t Return presented fo r years when there were 5 po rtfo lio s o r less in the co mpo site. Quarterly & Annualized Performance % (As of March 31, 2011) Since Inception 2Q10 3Q10 4Q10 1Q11 1 Year 3 Year 5 Year 7 Year 10 Year (1/1991) Dreman Large Cap Value -15.0 13.2 13.1 5.8 15.1 -1.0 0.0 3.5 3.8 10.9 (Gross of Fees) Dreman Large Cap Value -15.2 12.9 12.9 5.5 14.0 -2.0 -1.0 2.5 2.8 9.9 (Net of Fees) Russell 1000® Value -11.2 10.1 10.5 6.5 15.2 0.6 1.4 4.6 4.5 10.3 S&P 500 ® -11.4 11.3 10.8 5.9 15.7 2.4 2.6 4.5 3.3 9.3 Source: CAPS 4.0. +Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. For more information, please refer to the full disclosure presentation, which can be found in the appendix. Please note that the Large Cap Value composite may purchase shares of the Russell 1000® Index and S&P 500® Index futures on a temporary basis in lieu of investing in equity securities. The Large Cap Value composite intends to remain substantially invested in equity securities. Past performance is not indicative of future results.DREMANVALUE MANAGEMENT 42
  • 43. Large Cap Value Composite Performance Disclosures Dreman Value Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in compliance with the GIPS standards. Dreman ValueManagement has been independently verified for the periods July 1, 1997- June 30, 2010. Beginning July 1, 2005 Dreman has been verified by Ashland Partners & Company LLP. Verificationassesses 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 tocalculate and present performance in compliance with the GIPS standards. The Dreman Large Cap Value composite has been examined for the periods July 1, 1997 – June 30, 2010. The verificationand performance examination reports are available upon request.1. DVM is a division of Dreman Value Management, L.L.C. (“Dreman”), an independent investment management firm and registered advisor established on July 1, 1997. DVM manages a variety of assets, including equities and fixed income among others. For the period from 1991 through June 30, 1997, David Dreman was the Chief Investment Officer of Dreman’s predecessor firm and was responsible for executing all investment management decisions. Performance returns for periods prior to July 1, 1997 is from accounts maintained by DVM’s predecessor firm. Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. Effective June 30, 2009, the methodology used to determine total composite assets, number of portfolios and percent of firm assets has changed. The new method of calculation is based on end of period assets whereas the previous method used beginning of next period assets. This change has been made due to an upgrade in the program used to calculated composite performance. This change effects all time periods beginning July 1, 2009. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.2. DVM’s Large Capitalization Value Composite began in January of 1991. The composite shows the firm’s performance results from its commencement of operations on July 1, 1997 and is linked to the returns of its predecessor firm prior to July 1, 1997. David Dreman was the Chief Investment Officer for all predecessor firms from 1981 to June 30, 1997. This Composite includes all of the Firm’s accounts or portfolios that are in excess of $1,000,000 in market value, that are managed by the Firm on a fully discretionary basis in a large capitalization trading style without regard to any tax sensitivity. Prior to July 1, 2009 the composite had a minimum account size requirement of $5,000,000. Fully discretionary accounts include accounts that have investment restrictions, where the restriction accounts for less than 5% of the total portfolio value. Portfolios in the composite generally invest in securities with below market P/E ratios and market capitalizations greater than $8 billion.3. The Large Cap Value composite benchmarks are the Russell 1000® Value Index and the S&P 500® Index. The Russell 1000® Value Index is a subset of the Russell 1000® Index and measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The S&P 500® Index includes 500 blue chip, large cap stocks, which together represent about 75% of the total U.S. equities market.4. Valuations are computed and performance is reported in U.S. Dollars.5. Returns are presented gross and net of management fees and include the reinvestment of all income. Gross-of-fees performance returns are presented before management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Net-of-fees performance returns are calculated by deducting the highest fee of 0.25% from the quarterly gross composite return. The annual fee schedule is as follows: 1.00% on the first $3,000,000, 0.65% on the next $17,000,000, 0.60% on the next $30,000,000 and 0.55% on assets greater than $50,000,000. Please refer to the ADV Part II, for all composite fee schedules. Actual investment advisory fees incurred by clients may vary.6. DVM’s Large Cap Value composite was incepted on January 1, 1991 and the composite was created on July 1, 1997. The firm maintains a complete list and description of all composites, which is available upon request. DVM’s Large Cap Value composite performance results are linked to the performance track record of the Large Cap Value portfolios of DVM’s predecessor firms.7. Internal dispersion is calculated using the asset weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. For those years when less than five portfolios were included in the composite for the full year, no dispersion measure is presented.8. The three year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The performance data quoted above represents past performance. Past performance is not indicative of future results, and periodically, current performance may be lower or higher than the performance data quoted. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual account performance may differ due to individual account restrictions and limitations. To obtain the most recent month-end performance, please contact us at rfi@dreman.com or 1.800.952.6667. This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers. DREMAN VALUE MANAGEMENT 43
  • 44. Mid Cap Value Composite Historical Performance Total Gross-of- Net-of- Russell Composite Total Firm Fees Fees Midcap® Composite 3- Benchmark Number Internal Assets Assets Return Return Value Yr St. Dev 3-Yr St. Dev of Dispersion* ($ USD % of Firm ($ USD Period (%) (%) % (%) (%) Portfolios (%) Million) Assets Million) 2004 22.2 21.0 23.7 1 0.9 0.0 12,519 2005 13.8 12.7 12.7 2 12.6 0.1 14,338 2006+ 18.8 17.7 20.2 4 65.5 0.3 19,191 2007 6.7 5.7 -1.4 8.2 9.1 3 101.8 0.6 17,066 2008 -38.7 -39.4 -38.4 18.0 18.7 2 144.6 1.8 7,747 2009 40.4 39.0 34.2 23.1 25.0 2 181.9 4.3 4,276 2010 20.4 19.3 24.8 25.3 27.1 2 207.6 4.2 4,925 *Internal dispersion is calculated using the asset-w eighted standard deviation of all Annualized portfolios that w ere included for the entire year. Internal dispersion is not Return 9.0 7.9 7.9 presented for years w hen there w ere 5 portfolios or less in the composite. Quarterly & Annualized Performance % (As of March 31, 2011) Since 2Q10 3Q10 4Q10 1Q11 1 Year 3 Year 5 Year 7 Year Inception (1/2004) Dreman Mid Cap Value -10.3 12.8 11.5 7.5 21.3 6.2 5.7 9.3 9.8 (Gross of Fees) Dreman Mid Cap Value -10.5 12.6 11.3 7.2 20.2 5.2 4.7 8.2 8.7 (Net of Fees) Russell Midcap® Value -9.6 12.1 12.2 7.4 22.3 6.6 4.0 8.2 8.7 Source: CAPS 4.0. +Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. For more information, please refer to the full disclosure presentation, which can be found in the appendix. Past performance is not indicative of future results.DREMANVALUE MANAGEMENT 44
  • 45. Mid Cap Value Composite Performance Disclosures Dreman Value Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in compliance with the GIPS standards. Dreman ValueManagement has been independently verified for the periods July 1, 1997- June 30, 2010. Beginning July 1, 2005 Dreman has been verified by Ashland Partners & Company LLP. Verificationassesses 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 tocalculate and present performance in compliance with the GIPS standards. The Dreman Mid Cap Value composite has been examined for the periods January 1, 2004 – June 30, 2010. Theverification and performance examination reports are available upon request.1. DVM is a division of Dreman Value Management, L.L.C. (“Dreman”), an independent investment management firm and registered advisor established on July 1, 1997. DVM manages a variety of assets, including equities and fixed income among others. For the period from 1991 through June 30, 1997, David Dreman was the Chief Investment Officer of Dreman’s predecessor firm and was responsible for executing all investment management decisions. Performance returns for periods prior to July 1, 1997 is from accounts maintained by DVM’s predecessor firm. Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. Effective June 30, 2009, the methodology used to determine total composite assets, number of portfolios and percent of firm assets has changed. The new method of calculation is based on end of period assets whereas the previous method used beginning of next period assets. This change has been made due to an upgrade in the program used to calculated composite performance. This change effects all time periods beginning July 1, 2009. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request. .2. DVM’s Mid Capitalization Value Composite began in December of 2004. This Composite includes all of the Firm’s accounts or portfolios that are in excess of $800,000 in market value, that are managed by the Firm on a fully discretionary basis in a mid-capitalization trading style without regard to tax sensitivity. Fully discretionary accounts include accounts that have investment restrictions, where the restriction accounts for less than 5% of the total portfolio value. Portfolios in the composite generally invest in securities with below market P/E ratios and market capitalizations between $2 and $15 billion.3. The Mid Cap Value composite’s primary benchmark is the Russell Midcap® Value Index. The primary benchmark, the Russell Midcap® Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of the Russell 1000® Value Index.4. Valuations are computed and performance is reported in U.S. Dollars.5. Returns are presented gross and net of management fees and include the reinvestment of all income. Gross-of-fees performance returns are presented before management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Net-of-fees performance returns are calculated by deducting the highest fee of 0.25% from the quarterly gross composite return. The annual fee schedule is as follows: 0.90% on the first $20,000,000, 0.70% on the next $30,000,000 and 0.65% on assets greater than $50,000,000. Please refer to the ADV Part II for all composite fee schedules. Actual investment advisory fees incurred by clients may vary.6. DVM’s Mid Cap Value composite was incepted and created in January, 2004. The firm maintains a complete list and description of all composites, which is available upon request.7. Internal dispersion is calculated using the asset weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. For those years when less than five portfolios were included in the composite for the full year, no dispersion measure is presented.8. The three year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The performance data quoted above represents past performance. Past performance is not indicative of future results, and periodically, current performance may be lower or higher than the performance data quoted. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual account performance may differ due to individual account restrictions and limitations. To obtain the most recent month-end performance, please contact us at rfi@dreman.com or 1.800.952.6667. This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers.DREMAN VALUE MANAGEMENT 45
  • 46. Small-Mid Cap Value Composite Historical Performance Total Gross- Net-of- Russell Com posite Total Firm of-Fees Fees 2500® Com posite Benchm ark Num ber Internal Assets % Assets Return Return Value 3-Yr St. Dev 3-Yr St. Dev of Dispersion* ($ USD of Firm ($ USD Period (%) (%) (%) (%) (%) Portfolios (%) Million) Assets Millions) 11/2006- 12/2006+ 5.5 5.2 4.3 1 652 3.4 19,191 2007 3.8 2.8 -7.3 2 522 3.2 17,066 2008 -32.4 -33.1 -32.0 2 261 3.3 7,747 2009 30.6 29.3 27.7 22.9 24.6 2 273 6.4 4,276 2010 24.1 22.9 24.8 25.4 27.0 1 274 5.6 4,925 *Internal dispersio n is calculated using the asset-weighted standard Annualized deviatio n o f all po rtfo lio s that were included fo r the entire year. Internal 4.5 3.4 1.1 Return++ dispersio n is no t presented fo r years when there were 5 po rtfo lio s o r less in the co mpo site. Quarterly & Annualized Performance % (As of March 31, 2011) Since 2Q10 3Q10 4Q10 1Q11 1 Year 3 Year Inception (11/2006) Dreman Small-Mid Cap Value -10.2 13.5 13.2 8.8 25.5 9.7 6.2 (Gross of Fees) Dreman Small-Mid Cap Value -10.5 13.2 13.0 8.6 24.2 8.6 5.1 (Net of Fees) Russell 2500® Value -10.2 11.4 13.8 7.7 22.7 8.0 2.8 Source: CAPS 4.0. +Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. + + Annualized Return performance includes returns from when the composite was created and incepted on November 1, 2006. For more information, please refer to the full disclosure presentation, which can be found in the appendix. Past performance is not indicative of future results.DREMANVALUE MANAGEMENT 46
  • 47. Small-Mid Cap Value Composite Performance Disclosures Dreman Value Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in compliance with the GIPS standards. Dreman ValueManagement has been independently verified for the periods July 1, 1997- June 30, 2010. Beginning July 1, 2005 Dreman has been verified by Ashland Partners & Company LLP. Verificationassesses 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 tocalculate and present performance in compliance with the GIPS standards. The Dreman Small-Mid Cap Value composite has been examined for the periods December 1, 2006 – June 30, 2010. Theverification and performance examination reports are available upon request.1. DVM is a division of Dreman Value Management, L.L.C. (“Dreman”), an independent investment management firm and registered advisor established on July 1, 1997. DVM manages a variety of assets, including equities and fixed income among others. For the period from 1991 through June 30, 1997, David Dreman was the Chief Investment Officer of Dreman’s predecessor firm and was responsible for executing all investment management decisions. Performance returns for periods prior to July 1, 1997 is from accounts maintained by DVM’s predecessor firm. Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. Effective June 30, 2009, the methodology used to determine total composite assets, number of portfolios and percent of firm assets has changed. The new method of calculation is based on end of period assets whereas the previous method used beginning of next period assets. This change has been made due to an upgrade in the program used to calculated composite performance. This change effects all time periods beginning July 1, 2009. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.2. The Small-Mid Capitalization Value Composite began November 2006. This Composite includes all of the Firm’s institutional portfolios that are in excess of $800,000 in market value, that are managed by the Firm on a fully discretionary basis in a small-mid capitalization trading style and without regard to tax sensitivity. Fully discretionary accounts include accounts that have investment restrictions, where the restriction accounts for less than 5% of the total portfolio value. Portfolios in the composite generally invest in securities with below market P/E ratios and market capitalizations between $700 million and $7 billion.3. The Small-Mid Cap Value composite benchmark is the Russell 2500® Value Index. The Russell 2500® Value Index Measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.4. Valuations are computed and performance is reported in U.S. Dollars.5. Returns are presented gross and net of management fees and include the reinvestment of all income. Gross-of-fees performance returns are presented before management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Net-of-fees performance returns are calculated by deducting the highest fee of 0.25% from the quarterly gross composite return. The annual fee schedule is as follows: 0.95% on the first $20,000,000, 0.75% on the next $30,000,000 and 0.70% on assets greater than $50,000,000. Please refer to the ADV Part II for all composite fee schedules. Actual investment advisory fees incurred by clients may vary.6. DVM’s Small-Mid Cap Value composite was incepted and created in November, 2006. The firm maintains a complete list and description of all composites, which is available upon request.7. Internal dispersion is calculated using the asset weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. For those years when less than five portfolios were included in the composite for the full year, no dispersion measure is presented.8. The three year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The performance data quoted above represents past performance. Past performance is not indicative of future results, and periodically, current performance may be lower or higher than the performance data quoted. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual account performance may differ due to individual account restrictions and limitations. To obtain the most recent month-end performance, please contact us at rfi@dreman.com or 1.800.952.6667. This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers. DREMAN VALUE MANAGEMENT 47
  • 48. Institutional Small Cap Value Composite Historical Performance Total Composite Total Firm Gross-of- Net-of- Russell Composite Benchmark Number Internal Assets Assets Fees Fees 2000® Value 3-Yr St Dev 3-Yr St Dev of Dispersion* ($ USD % of Firm ($ USD Period Return (%) Return (%) (%) (%) (%) Portfolios (%) Million) Assets millions) 2001 8.6 7.5 14.0 19.1 14.7 1 21 0.3 5,978 2002 -11.6 -12.5 -11.4 20.4 17.4 4 20 0.3 6,246 2003 48.6 47.3 46.0 19.4 18.4 5 0.3 38 0.4 8,928 2004 32.2 31.0 22.3 17.1 17.5 5 0.7 46 0.4 12,519 2005 10.4 9.3 4.7 13.9 14.1 9 0.3 65 0.5 14,338 2006+ 32.2 31.0 23.5 13.8 12.3 15 0.3 433 2.1 19,191 2007 0.3 -0.7 -9.8 13.3 12.6 14 0.7 508 3.0 17,066 2008 -25.1 -25.9 -28.9 18.1 19.1 13 0.5 440 5.2 7,747 2009 30.8 29.5 20.6 22.6 25.6 19 1.0 2660 62.2 4,276 2010 20.5 19.3 24.5 24.9 28.4 20 0.3 3511 71.3 4,925 *Internal dispersio n is calculated using the asset-weighted standard deviatio n o f all Annualized po rtfo lio s that were included fo r the entire year. Internal dispersio n is no t presented fo r Return 12.5 11.4 8.4 years when there were 5 po rtfo lio s o r less in the co mpo site. Quarterly & Annualized Performance % (As of March 31, 2011) Inception 2Q10 3Q10 4Q10 1Q11 1 Year 3 Year 5 Year 7 Year 10 Year (6/1991) Dreman Institutional Small Cap Value (Gross of -9.7 10.1 13.6 5.7 19.4 9.6 6.9 12.1 12.9 15.5 Fees) Dreman Institutional Small Cap Value (Net of -9.9 9.9 13.3 5.5 18.3 8.5 5.8 11.0 11.7 14.4 Fees) Russell 2000® Value -10.6 9.7 15.4 6.6 20.6 6.8 2.2 6.1 9.0 11.7 Source: CAPS 4.0. Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset + Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. For more information, please refer to the full disclosure presentation, which can be found in the appendix. Past performance is not indicative of future results.DREMANVALUE MANAGEMENT 48
  • 49. Institutional Small Cap Value Composite Performance DisclosuresDreman Value Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in compliance with the GIPS standards. Dreman ValueManagement has been independently verified for the periods July 1, 1997- June 30, 2010. Beginning July 1, 2005 Dreman has been verified by Ashland Partners & Company LLP. Verificationassesses 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 tocalculate and present performance in compliance with the GIPS standards. The Dreman Institutional Small Cap Value composite has been examined for the periods July 1, 1997 – June 30, 2010.The verification and performance examination reports are available upon request.1. DVM is a division of Dreman Value Management, L.L.C. (“Dreman”), an independent investment management firm and registered advisor established on July 1, 1997. DVM manages a variety of assets, including equities and fixed income among others. For the period from 1991 through June 30, 1997, David Dreman was the Chief Investment Officer of Dreman’s predecessor firm and was responsible for executing all investment management decisions. Performance returns for periods prior to July 1, 1997 is from accounts maintained by DVM’s predecessor firm. Effective January 1, 2006, Dreman’s wrap-fee SMA/UMA assets were re-defined as a separate division under the name Dreman Asset Management (“DAM”). Prior to January 1, 2006, total firm assets included assets managed by Dreman. Effective January 1, 2006, total firm assets include only the assets of DVM. Effective June 30, 2009, the methodology used to determine total composite assets, number of portfolios and percent of firm assets has changed. The new method of calculation is based on end of period assets whereas the previous method used beginning of next period assets. This change has been made due to an upgrade in the program used to calculated composite performance. This change effects all time periods beginning July 1, 2009. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.2. DVM’s Small Capitalization Value Institutional Composite began June 1991. The composite shows the firm’s performance results from its commencement of operations on July 1, 1997 and is linked to the returns of its predecessor firm prior to July 1, 1997. David Dreman was the Chief Investment Officer for all predecessor firms from 1981 to June 30, 1997. This Composite includes all of the Firm’s accounts or portfolios that are in excess of $1,000,000 in market value, that are managed by the Firm on a fully discretionary basis in a small capitalization trading style without regard to tax sensitivity. Prior to July 1, 2009 the composite had a minimum account size requirement of $3,000,000. Portfolios within the Small Cap Value Institutional Composite contain less than 200 securities each. Fully discretionary accounts include accounts that have investment restrictions, where the restriction accounts for less than 5% of the total portfolio value. Portfolios in the composite generally invest in securities with below market P/E ratios and market capitalizations between $300 million and $2.5 billion.3. The Institutional Small Cap Value composite benchmarks are the Russell 2000® Value Index. The Russell 2000® Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.4. Valuations are computed and performance is reported in U.S. Dollars.5. Returns are presented gross and net of management fees and include the reinvestment of all income. Gross-of-fees performance returns are presented before management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Net-of-fees performance returns are calculated by deducting the highest fee of 0.25% from the quarterly gross composite return. The annual fee schedule is as follows: 1.00% on the first $50,000,000, 0.95% on the next $25,000,000 and 0.90% on assets greater than $75,000,000. Please refer to the ADV Part II for all composite fee schedules. Actual investment advisory fees incurred by clients may vary.6. DVM’s Institutional Small Cap Value composite was incepted on June 1, 1991 and the composite was created on July 1, 1997. The firm maintains a complete list and description of all composites, which is available upon request. DVM’s Institutional Small Cap Value composite performance results are linked to the performance track record of the Institutional Small Cap Value portfolios of DVM’s predecessor firms.7. Internal dispersion is calculated using the asset weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. For those years when less than five portfolios were included in the composite for the full year, no dispersion measure is presented.8. The three year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The performance data quoted above represents past performance. Past performance is not indicative of future results, and periodically, current performance may be lower or higher than the performance data quoted. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual account performance may differ due to individual account restrictions and limitations. To obtain the most recent month-end performance, please contact us at rfi@dreman.com or 1.800.952.6667.This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers. DREMAN VALUE MANAGEMENT 49
  • 50. IMPORTANT DISCLOSURES The preceding materials have been prepared by Dreman Value Management (“DVM”), to provide clients and prospective clients with information concerning the investment results achieved by DVM and David Dreman, the Chief Investment Officer of the firm. We believe that it is important for you to understand what performance information means, and the limitations on the use of such information. As you know, past performance is not a indicative of future results. The enclosed information includes data prepared in conformity with certain industry standards referred to below. It also includes supplemental data prepared using the same criteria that extends the periods presented for your consideration to reflect the results of all accounts currently managed by Mr. Dreman, Mr. Hoover and Mr. Roach as well as accounts managed by Mr. Dreman as Chief Investment Officer of predecessor firms during earlier periods. In order to understand the information presented, it is important that you read and evaluate the information contained in the notes presented below. They supply important information and will help you to understand the tables. The information provided includes the performance results of discretionary accounts managed during the covered periods, and excludes accounts that were not managed continuously during the period, or which are managed according to different criteria set by a client, and not under the general discretion of DVM. The information presented in this presentation has been developed internally and/or obtained from sources which DVM believes to be reliable; however, DVM does not guarantee the accuracy, adequacy or completeness of such information nor do we guarantee the appropriateness of any strategy referred to for any particular investor. There is no guarantee that any opinion, forecast, estimate, or objective will be achieved. Forecasts and estimates have certain inherent limitations, and unlike actual data, do not reflect actual market conditions. This presentation is provided for informational purposes only an should not be construed as a recommendation or offer of any particular security, strategy or investment product. This presentation reflects the opinion of the commentator(s) on the date made and is subject to change at any time without notice and does not constitute tax, legal, or investment advice to, or particular recommendation for, any investor.DREMANVALUE MANAGEMENT 50

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