Brazos Mutual Funds - Small Cap Overview

Brazos Small Cap Fund: Fund Overview

Investment Objective

The Brazos Small Cap Fund seeks to provide maximum capital appreciation, consistent with reasonable risk to principal, by investing primarily in companies with market capitalizations of $200 million to $2.5 billion, or a capitalization of companies represented in the Russell 2000 Growth Index at the time of the portfolio's investment.


Quick Look

As of 8/27/2008
Ticker Symbol	BJSCX
CUSIP	10620M100
Fund Number	1416
Inception Date	12/31/96
Daily NAV	$ 22.01
Daily Change	$ 0.31
Daily pricing information provided by Vision® Past performances does not guarantee future results.

Fund Description

The Brazos Small Cap Fund was originally offered as a means to capitalize on the higher returns found in smaller capitalization companies. We feel that many companies with smaller capitalizations have greater potential than larger capitalization companies to deliver above-average revenue and earnings growth. Smaller company stocks generally have greater volatility than larger company stocks. However, we believe that smaller capitalization companies are more likely to have been overlooked by the investing community, and may, therefore, offer above average returns.

We generally seek investments in securities of companies with high growth rates, average annual revenues under $1 billion, above average return on equity, and low debt levels. We seek to identify earnings growth in small cap companies before it is reflected in those companies' stock price. We look for catalysts for such growth by using multiple screens to identify prospective portfolio companies. To manage fluctuations in the value of the Portfolio's investments, we invest across numerous industry sectors with no industry sector representing more than 25% of the value of the Portfolio. We believe that many companies with smaller capitalizations have greater potential than their larger counterparts to deliver above average revenue and earnings growth rates.

The Brazos Small Cap Fund uses a bottom-up, fundamental research methodology to identify companies for potential purchase. We conduct due diligence with each company’s senior management, suppliers, competitors and customers in an attempt to understand the dynamics within each company's business. We then select companies with strong growth in revenue, earnings and cash flow, predictable operating models, seasoned management, and unique products or services. We confirm our analysis using a variety of screens and confirmation checks.

Investor Profile

The Brazos Small Cap Fund may be appropriate for investors who:

	Are seeking long-term capital growth;
	Do not need current income;
	Are willing to hold an investment over a long period of time, and;
	Are able to tolerate fluctuations in the principal value of their investment.

Minimums, Fees & Expenses (As of 7/31/2008)
Class	Min Investment	Fund Expenses
		*Management Fee*	*Distribution Fee**	Total Operating Expense Ratio	Expense Ratio Cap
Y	$1,000,000	0.90 %	-	1.35 %	1.35 %
N	$5,000	0.90 %	0.35 %	1.65 %	1.65 %
*Class N includes 12b-1 fee (no 12b-1 fee on Class Y).
Stocks of micro cap and small cap companies are more volatile than stocks of larger cap companies. Micro cap and small cap companies are subject to additional risk including, but not limited to, limited liquidity and greater volatility compared to investments in larger more-established equity securities. As of July 31, 2008, the Brazos Small Cap expense ratio was 1.35%; of that 0.90% is allocated to management fees and the remainder is applied toward other annual portfolio operating expenses.
Please call Shareholder Services at 1-800-426-9157 for more information on our closed share class B. Please call Client Relations at 1- 866-521-5642 for more information on Institutional share classes.

Click here to download the Brazos Small Cap Fund fact sheet in PDF format.

Click here for the Brazos Small Cap Fund dividend distributions history for 2007.

Click here to view additional disclosures.