ICM Small Company Portfolio

Fund Overview

Established in April 1989, the ICM Small Company Portfolio seeks to provide maximum, long-term total return, consistent with reasonable risk to principal, by investing primarily in common stocks of smaller companies in terms of revenues, assets, and, more importantly, market capitalization. As described in the Prospectus, the Fund invests at least 80% of its net assets in common stocks of companies with market capitalizations of less than $2 billion at the time of purchase.

Asset Class / Style U.S. Equity / Value
Fund Inception Date: 4/19/1989
Benchmark: Russell 2000® Value Index
Quotron Symbol: ICSCX
Minimum Initial Investment: $2,500,000
NAV/Change: $24.96 / +0.47 as of 9/3/2010
Total Fund Assets: $1,136 MM as of 8/31/2010
Total Expense Ratio: 0.89%

Investment Process

Our investment process is designed to help us achieve our primary investment goal, which is to capture the small cap value effect and add incremental value through a rigorous stock selection process. The process can best be characterized as a bottom-up, fundamentally driven one, using traditional valuation tools. Emphasis is placed on market share, management evaluation, cash flow and balance sheet characteristics, and valuation relative to the market, company peers, and a company's own historic valuation range.

The small cap value team uses screens and other sources to identify potential candidates for further fundamental analysis. The shares of companies which pass this review are added to the Portfolio, which typically holds between 130 - 150 positions. Sector weightings are a residual of the individual stock selection process; but, economic considerations are reflected in the decision to buy, hold, or sell a security. Sale decisions are based largely on valuation considerations or the failure of a company to meet expectations established at the time of purchase. Risk control is accomplished through diversification and individual security quality. Historically, turnover has been less than 30%.

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Performance

Total Returns As of 8/31/2010 Last Quarter*
Year to Date -5.58% -3.36%
3 Month -10.38% -11.43%
Annualized Returns As of 8/31/2010 Last Quarter*
1 Year 4.51% 22.93%
3 Year -7.40% -7.71%
5 Year 0.46% 1.65%
10 Year 7.56% 8.54%
Since Inception 11.71% 11.93%

*Last Quarter data as of 6/30/2010

Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so an investor's shares may be worth more or less than the original purchase price. Current performance may be higher or lower than the performance quoted. Returns include the reinvestment of all dividends and capital gains.

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Fund Characteristics

Portfolio Allocation As of 6/30/2010
Equity 95.7%
Cash 4.3%
Sector Diversification* As of 6/30/2010
Producer Durables 23.7%
Financial Services 22.0%
Technology 13.3%
Materials & Processing 11.6%
Consumer Discretionary 10.8%
Health Care 6.4%
Energy 4.6%
Cash 4.3%
Utilities 2.0%
Consumer Staples 1.4%
Top Holdings* As of 6/30/2010
Whiting Petroleum Corp. 1.7%
AptarGroup Inc. 1.7%
Bio-Rad Laboratories Inc. (Cl A) 1.6%
Sirona Dental Systems Inc. 1.6%
Ametek Inc. 1.4%
Regal-Beloit Corp. 1.3%
Actuant Corp. (Cl A) 1.3%
Littelfuse Inc. 1.3%
CommScope Inc. 1.2%
Interline Brands Inc. 1.2%

* The portfolio is actively managed and holdings are subject to change, and should not be considered as investment recommendations to buy individual securities.

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Fund Materials

Proxy Voting
2009 Proxy Voting Report (PDF)
Proxy Voting Records
Proxy Voting Concise Guidelines (PDF)
Proxy Voting Policy (PDF)
Investor Materials
2010 Summary Prospectus (PDF)
Annual Report 10-31-09 (PDF)
Semi-Annual Report 04-30-10 (PDF)
2010 SAI (PDF)
New Account Application (PDF)
Privacy Policy (PDF)
2010 Statutory Prospectus (PDF)
Quarterly Reports
2Q 2010 ICM Small Company Portfolio Fact Sheet (PDF)
2Q 2010 Holdings Report (PDF)
2Q 2010 ICM Small Company Portfolio Commentary (PDF)
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There can be no assurance that the Portfolio will achieve its stated objectives. Mutual fund investing involves risk, including loss of principal. There are specific risks inherent in small cap investing such as greater share price volatility as compared to other funds that invest in stocks of companies with larger and potentially more stable market capitalizations. Since the portfolio is actively managed, its holdings are subject to change and should not be considered a recommendation to buy individual securities.

Carefully consider the Fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund's prospectus which may be obtained by clicking here or by calling 866.234.5426. Please read the prospectus carefully before investing.

The Russell 2000® Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Please note that one cannot invest directly in an unmanaged index.

Investment Counselors of Maryland, LLC is an affiliate of Old Mutual (US) Holdings Inc.

The ICM Small Company Portfolio is distributed by SEI Investments Distribution Co., which is not affiliated with Investment Counselors of Maryland, LLC or Old Mutual (US) Holdings, Inc.