1. Berwyn Income Fund (BERIX)

2. The firm’s guiding principles are:
Company Overview I
Chartwell Investment Partners, LLC, is a Berwyn, Pennsylvania based investment firm, founded in 1997, focusing on institutional, sub-advisory and private client relationships. Chartwell is a
wholly-owned subsidiary of TriState Capital Holdings, Inc., a registered bank holding company
based in Pittsburgh, Pennsylvania.
The firm’s guiding principles are:
Purity of Investment Style
Responsible Business Plan
Chartwell is…
65 Employees
$8.2 Billion in Assets (as of 03/31/2017)
Over 150 Institutional & Sub-Advisory Relationships
25 Investment Professionals
21 Client Service Professionals

3. Separately Managed Portfolios: $5 million minimum
Product Summary
Chartwell Investment Partners manages $8.2 billion in a variety of equity and fixed income investment styles, for over 150 institutional, sub-advisory and private client relationships.
Investment Styles
Client Type
Separately Managed Portfolios: $5 million minimum
Information as of

4. Representative Client List
Chartwell is dedicated to building exceptional client relationships. We are pleased with the diversification among our institutional clients.
First Trust
Frank Russell
Timothy Partners
SUB-ADVISORY
Ahold USA Holdings
Southern Company
The Hartford
CORPORATE
Anne Arundel County, MD
State of Missouri Teachers
State of Ohio Teachers
State of Pennsylvania
PUBLIC
Brinker Capital
Envestnet
Merrill Lynch
Morgan Stanley Wealth Management
Wells Fargo Advisors
MANAGED ACCOUNTS
G.C.I.U Inter-Local
Greater PA Carpenters
I.B.E.W. Local No. 98
IUPAT Industry
UFCW Local No. 1776
TAFT-HARTLEY
Girard Estate
PCOM
Richard King Mellon Foundation
ENDOWMENT/FOUNDATION
AmeriHealth Caritas Health Plan
Health Partners Plans
Independence Blue Cross
Keystone Family Health Plan
Lancaster General
HEALTHCARE

5. Why the Berwyn Income Fund?
Independent research and investment views
Core skill managing income mandates
Integrated fixed income and equity process
PMs with 25 years of combined experience with income investing
Culture of stewardship (previously closed to new business)

6. Key Characteristics of the Berwyn Income Fund
Emphasis on income generation, potential for capital growth, and relatively low downside risk
Seeks diversified portfolio of income generating assets
Focused on total return rather than just yield
As much emphasis on risk as return
Majority of the fund invested in fixed income securities; 30% may be invested in dividend paying common stocks
Investment Style: Value
Morningstar Category: Allocation % to 30% Equity
Inception Date: 9/3/1987

7. Key Investment Team Members
George Cipolloni, CFA
Portfolio Manager
George joined the firm in 2002 and started managing the income strategy in He has over 15 years of experience in financial analysis. He holds a degree in BS Business Administration, cum laude from Drexel University and is a CFA Charter holder.
Mark Saylor, CFA
Portfolio Manager
Mark joined the firm in 2007 and has been co-lead manager of the income strategy since He has over 10 years of experience in financial analysis He holds a degree in BA Economics and Finance, cum laude from Eastern University and is a CFA Charter holder.

8. Investment Philosophy – Five Key Tenets
Valuation driven
Purchase equity at discount to intrinsic value
Most bonds purchased at discount to par [or relatively wide spread]
Contrarian
Have a tendency to think differently than Wall Street consensus
Independent thinking
All research in-house
Bottom-up
Strong focus on return on capital and other financial parameters
Macro-economic view, if any, by product of bottom up research
Long term
Willingness to see through short term issues

9. Two Ways the Team Attempts to Add Value
INDIVIDUAL SECURITY SELECTION
What is currently cheap?
Valuation screens
Is there value?
Financial Ratio and Statement Analysis
Is the value sustainable?
Competitive / Strategic Analysis
ASSET ALLOCATION
Go where the value is
Decide on capital structure entry
Avoid overvalued / Bubble markets
(Tech in 1999, Housing in 2007)
Cash balance is a residual
High Cash = little perceived value
Low Cash = attractive markets
We believe flexibility and Contrarian thinking are required to take advantage of various market cycles

10. Investment Universe Equity (large, mid and small-cap)
Fixed Income
Investment grade**
High yield
Preferred securities
Convertible bonds
Asset and Mortgage–backed securities
Treasury and agency bonds
Cash
Max 30% at time of purchase
Mkt. Cap > $125m
Div. Yield > 1%*
Min 70%
Issue size > $100m
Credit rating usually BBB to B (Source: S&P)
*Not required to sell a position if the dividend is eliminated.
The yield is determined by dividing the amount of the annual dividends per share by the market price per share of the stock
**Investment Grade is any security rated by S&P BBB or higher OR by Moody’s Baa3 or higher

11. Seeking a diversified portfolio of income producing securities
Integrated Process
Equity
Debt
Screening
Valuation Metrics │ BB+ to CCC+ (Source: S&P)
Min. dividend yield; Mkt. cap > $125m │ Issue size > $100m
Financial ratios analysis
Exhaustive analysis of historical results
Dividend Policy │ Relative Spread*
In-depth fundamental analysis
Analyze public filings
Initiate contact with company
Target Entry Point
Risk Management
Price determined through earnings power │ Price and relative spread analysis
Seeking a diversified portfolio of income producing securities
*A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings and risk, calculated by deducting the yield of one instrument from another.

12. Performance

13. Long-Term Track Record (USD)
Ranked in the Top 1% returns over 10 and 15 years (Allocation 15%-30% Equity)
Total Return % (03/31/2017)
One Year
Three Year
Five Year
10 Year
15 Year
BERIX
7.00
2.57
5.50
6.66
7.23
Morningstar US OE Allocation 15% to 30% Equity Category
5.78
2.49
3.37
3.79
4.84
+/- Category
1.22
0.08
2.13
2.87
2.40
Percentile Rank in Category 18 58 8 1
Number of Funds in Category
202
171
151 86 19
Lipper Income Fund Index
8.41
3.80
5.55
4.49
5.22
+/- Lipper Index
-1.41
-1.23
-0.05
2.17
2.01
Past performance does not guarantee future results. Investment fund and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data cited. Current month end data is available at Returns for periods of less than a year are not annualized. The fund's gross expense ratio is 0.70%.
Source: Thompson Reuters; Lipper Report as of 03/31/2017
Morningstar Category “US OE Allocation -- 15% to 30% Equity” includes mutual funds that can invest up to 15% to 30% of the fund in equity securities and invest the remainder in fixed income securities.
Lipper Income Fund Index consist of income producing mutual funds as tracked by Lipper Inc.
One cannot directly invest in an index.
Past performance is no guarantee of future results. Morningstar Percentile Ranking: Rankings are based on total return, including the reinvestment of dividends and capital gains but do not include sales charges for the periods indicated. Rankings are relative to a peer group and do not necessarily mean the fund had high total returns. Funds are assigned a rank within a universe of funds similar in investment objective as determined by Morningstar. The lower the number rank, the better the Fund performed compared to other funds in the classification group. The highest rank is 1 and the lowest rank 100. The Fund’s ratings reflects fee waivers in effect; in their absence, ratings may have been lower.

14. Long Term Performance Summary
The Fund beat XY Category Average Return in 7 years out of the past 10 years.
Average Beat over the 7 years
+504bps*
Average Loss over the 3 years
-61bps
Best Beat
+1181bps in 2013
Worst Loss
-123bps in 2015
Years Beat by ≥ 800bps
2009, 2013
Years Lost >100bps
2015
Best Absolute Return
+30.2% in 2009
Worst Absolute Return
-10.2 in 2008
*One basis point is equal to 1/100th of 1%, or 0.01% (0.0001), and is used to denote the percentage change in a financial instrument.
Past performance does not guarantee future results. Investment fund and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data cited. Current month end data is available at Returns for periods of less than a year are not annualized. The fund's gross expense ratio is 0.70%.

15. Fund positioning

16. Worried about rising rates?
Worried about rising rates?  BERIX’s duration* is 2.45 years vs versus a duration of 8.87 years for the 10-Year Treasury Note and 6.97 for the Global Bond Market Index** (Bloomberg, 03/31/2017). BERIX currently has its lowest allocation to fixed income in the history of the fund.  We have not stretched for yield by going out longer on the yield curve.
Worried about High Yield Bonds/Credit market?  BERIX has among its lowest allocation to High Yield bonds in the history of the fund.  We have not stretched for yield by going lower credit quality.
Worried about liquidity?  BERIX is as liquid as it’s ever been in its history – 9% of the fund is in Cash; 46% of the fund is in short term investment grade bonds that will mature between now and the end of the first quarter of 2018
Worried about complicated, structured fixed income securities?  BERIX only invests in “plain vanilla” corporate securities that have historically demonstrated liquidity during the worst of times.  We have not stretched for yield by investing in any newly created/untested forms of fixed income securities promising better than market rates.
Worried about the stock market?  BERIX’s equity portfolio is underweight equities at 21%. 
Worried about overall volatility?  We believe BERIX is positioned and prepared to deal with unstable equity or fixed income markets.
*Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
**The Barclays Global Aggregate Index ins a flagship measure of global investment grade debt from 24 local currency markets
Past Performance is no guarantee of future results. Allocations are subject to change at any time.
All information is as of 03/31/2017

17. Fund Positioning as of March 31, 2017
We believe the fund is well positioned in the event that interest rates increase or corporate credit spreads widen

18. Asset Allocation by Security Type 2006 - Present
Demonstrated asset allocation flexibility over time
Asset allocation is subject to change at any time

19. Yield/Duration Comparison
As of 03/31/2017
Duration
BERIX
2.45 years
10-year U.S. Treasury
8.87 years
Source: Bloomberg. Data from December 31, 2005 to March 31, 2017
Past performance is no guarantee of future results
Rolling 12-month Yield is the annualized average yield for a 12-month period ending with the listed year.
A 10-year treasury note is a debt obligation issued by the United States government that matures in 10 years.

20. Duration Comparison – BERIX vs. 10-Year Treasury 2006 - Present
Demonstrated asset allocation flexibility over time
Source: Bloomberg. Data from December 31, 2005 to March 31, 2017
Past performance is no guarantee of future results

21. Fixed Income: Largest Positions
As of March 31, 2017
Company
Sector
Maturity
% of Fund
Ciena Corp. Convertible 0.875% 15/Jun/17
Information Technology
Jun-17
2.95%
Symantec Corp 2.75% 15/Jun/17
2.48%
Astrazeneca Plc 5.9% 15/Sep/17
Health Care
Sep-17
2.09%
Roper Technologies Inc /Nov/17
Industrials
Nov-17
2.03%
Apple Inc. 3.85% 04/May/43
May-43
Nuance Convertible 2.75% 01/Nov/31
Nov-31
1.94%
Murphy Oil Corp 2.5% 01/Dec/17
Energy
Dec-17
1.93%
Dun & Bradstreet Corp 3.25% 01/Dec/17
1.91%
Newell Brands Inc. 2.05% 01/Dec/17
Consumer Discretionary
Interpublic Group 2.25% 15/Nov/17
Total
21.81%
Holdings are subject to change at any time, The most current available data regarding portfolio holdings can be found on our website,

22. Equity: Largest Positions
As of March 31, 2017
Company
Sector
% of Fund
Nintendo Co. Ltd
Information Technology
1.69%
Philips Electronics
Industrials
1.27%
Carlsberg AS-B-SPON ADR
Consumer Staples
1.20%
FLIR Systems Inc.
FirstEnergy Corp
Utilities
1.16%
GlaxoSmithKline PLC
Healthcare
1.01%
Sony Corp
Consumer Discretionary
Landauer Inc.
0.99%
Bank of America Corp
Financials
0.98%
Scripps Networks Interactive Class A
0.96%
Total
11.47%
Holdings are subject to change at any time, The most current available data regarding portfolio holdings can be found on our website,

23. Turnaround Situations That Have Performed Well
Nintendo historically operated in an insular fashion – driving all of its content through its internally developed gaming console systems. But through a careful reading of the company’s annual reports and message to shareholders over a number of years, we noticed a tangible and dramatic shift in strategy in early 2016.
Nintendo aims to leverage its vast array of intellectual property through the licensing of characters and products in smartphone games, theme parks and movies.
But still we think the biggest driver of future earnings should come from its newest gaming console Nintendo Switch.
Nintendo also currently has a strong balance sheet with no debt and a significant amount of cash and long term investments.
Landauer manufactures dosimeters which monitors and records radiation exposure.
The company’s market share in this niche market was a substantial but slow grower in the early 2000s.
The company’s former management team incurred debt to make acquisitions in other supposedly faster growing areas.
These new acquisitions were not nearly as profitable or successful as their core business. The management team was revamped in 2015 and is refocusing the company on their core dosimeter business, working to digitizing their main product offering.
New regulations may help to expand Landauer’s market reach in the future
(CABGY): A beer company run by the milk man?
After experiencing four years of stagnant earnings, Carlsberg hired former milk company executive Cees t’ Hart.
He is the first non-Dane leader since the company was founded in 1847.
t’ Hart is a well seasoned executive whose career includes a 25 year stint at global consumer company, Unilever.
We feel his focus on cost containment and operating efficiency should lead to more stable results especially with the Russian beer market stabilizing more recently.
(PHG): Turning away from the light
Philips is very well known for its lighting products.
The company is dramatically shifting its focus from this low margin business to the higher margins of the healthcare and consumer products businesses.
This shift, if successful, could lead to both higher sales and profits in the years ahead
Past performance is no guarantee of future results.

24. Disclosures
An investor should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The Fund's prospectus contains this and other information about the Fund and should be read before investing. The Fund's prospectus may be obtained by downloading it from the Fund's web site or by calling
Wholesaling and marketing efforts are provided by, among others, Chartwell TSC Securities Corp., an affiliate broker dealer, member FINRA. Chartwell Investment Partners, LLC and Chartwell TSC Securities Corp. are both wholly owned subsidiaries of TriState Capital Holdings, Inc.
Investing in any mutual fund involves risk, including the risk that you may lose all or part of the money you invest. The Berwyn Income Fund invests in both fixed-income and equity securities. The Fund’s investments in fixed-income securities are subject to such risks as: interest rate risk; call risk; default risk; high-yield (junk bond) risk; and unrated bond risk. The Fund also invests in equity securities which carry the potential for unpredictable drops in value and periods of lackluster performance. For additional information on these risks and other related risks (non-principal), please review the full prospectus.
One cannot invest directly in an index.
Opinions expressed are subject to change, are not a guarantee and should not be considered investment advice.
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The Berwyn Funds are distributed by IMST Distributors, LLC