Generate Value ("Alpha") or Discontinue Products
At TFS, we believe that there are inefficiencies in the securities markets that can be exploited to generate value for investors. If our products cannot demonstrate superior risk-adjusted performance relative to passive investments , then we will shut them down. Moreover, we encourage you to compare the alpha generated by our products to that of other investment products that you may be considering.

Align Interests With Investors
TFS is a firm believer in the benefit of investing in the funds that it manages since it provides the clearest indication that our interest is directly aligned with that of fund investors. Our internal policies currently require that each principal and Portfolio Manager invest at least fifty percent of their personal liquid assets in the funds managed by TFS.

Build Trust Through Integrity and Higher Fiduciary Standards
Customer trust is the most critical element to the success of our business and, consequently, we embrace the fiduciary responsibility we have to our clients. This philosophy is apparent in all aspects of the organization where TFS seeks to be an industry leader by setting standards that are more stringent than required by law. For example, the mutual funds managed by TFS adopted a policy of maintaining a majority of independent board members before this practice became an industry standard. As another example, TFS greatly restricts personal trading by employees and requires that any employee trades are pre-cleared by the firm's Chief Compliance Officer.

Educate Through Clear Disclosures and Fee Transparency
In an industry wrought with hidden agendas and poor disclosure, TFS has nothing to hide. Our disclosure documents are written to facilitate client understanding because we believe the key to building a long-term relationship is to establish a good product fit from the start. The funds managed by TFS do not charge 12(b)-1 fees or any type of sales loads. TFS discourages these fees and believes that they are a threat to the interests of investors and also inhibit progress in the fund industry by allowing inferior products to survive. In addition, TFS does not participate in soft-dollar arrangements with brokerage firms. Although these arrangements are legal and accepted by many of our competitors, TFS believes they do not allow investors to fully understand the costs of owning a mutual fund. Lastly, TFS seeks best execution on behalf of its fund clients.

Limit Organizational Growth
While growth is viewed as a positive component of a healthy organization, we recognize that rapid growth for an investment firm can have a detrimental impact on the services it renders. More specifically, rapid growth is generally known to cause a decrease in client service levels and fund performance. As a result, we seek to grow conservatively, introducing new funds only when the operational infrastructure and strategies are in place to support them. Moreover, we monitor asset levels closely and have demonstrated a commitment to restricting ongoing fund purchases as individual funds reach perceived capacity constraints.

Invest Heavily in Research & Development
Given the increasingly competitive landscape in the financial services industry, TFS knows that ongoing research and development is critical to our continued success. A large percentage of our human and capital resources are committed each year to ongoing strategy research in an effort to maintain and improve our fund performance.