CAMBIAR SMID VALUE COMMENTARY 2Q 2021

MARKET REVIEWU.S. equities marched higher in the second quarter, with the S&P 500 posting a gain of 8.6% (just shy of a new all-time high). Small-cap stocks were also positive in the quarter, with the Russell 2000 Index adding 4.3%. Market volatility has continued to decline throughout the year, providing a somewhat placid backdrop for stocks to drift higher. Investor sentiment seesawed between reflation/reopening plays and longer duration cyclical growth stocks, with the latter outperforming as bond yields declined.

Risk assets were temporarily rattled in June by the divergence in messaging coming out of the Federal Reserve, as some policymakers shifted from a longstanding accommodative position to a more hawkish stance. The combination of strong inflation data and the associated potential for earlier-than-expected tightening measures would have typically weighed on the equity markets. Yet stocks quickly recovered any losses and grinded higher, which speaks to the high level of confidence that market participants have in the Fed’s

ability to execute their average inflation framework in the face of higher prices and a recovering labor market.

In our view, the Fed’s policy moves made in the early days of the pandemic were key in providing a necessary backstop for risk assets. Yet, this ultra-accommodative policy stance is now resulting in market conditions commonly associated with asset bubbles. As the recovery in the U.S. economy continues to take hold, monetary policy should adjust accordingly. The longer the punch bowl remains in place, the more difficult it will be to remove (and the greater the ensuing hangover).

While not currently a priority for many investors, company-specific attributes such as strong balance sheets, defensible margins, and persistent cash flow generation should take on increased importance as the current cycle evolves. These fundamental characteristics remain key inputs to the buy decision here at Cambiar.

SMID VALUECONTRIBUTORS

Top Five Avg. Weights Contribution

Bed Bath & Beyond 2.12 0.71

American Financial Group 3.31 0.68

Mercury Systems 1.90 0.51

Expeditors Int’l of Washington 2.93 0.49

American Homes 4 Rent 3.07 0.47

DETRACTORS

Bottom Five Avg. Weights Contribution

Vontier 0.58 -0.16

GrafTech International 2.44 -0.19

Reinsurance Group of America 2.43 -0.20

ON Semiconductor 3.05 -0.25

Exelixis 2.70 -0.46

A complete description of Cambiar’s performance calculation methodology, including a complete list of each security that contributed to the performance of the Cambiar portfolio mentioned above is available upon request. Please contact Cambiar at 1.888.673.9950 for additional information. Past performance is no guarantee of future results.

2Q 2021 YTD 1 Year 3 Year 5 Year 10 Year Since Inception

SMID Value (gross) 4.9% 21.8% 60.2% 18.8% 18.6% 13.4% 16.1%

SMID Value (net) 4.7% 21.4% 59.3% 18.1% 17.9% 12.7% 15.3%

Russell 2500 Value 5.0% 22.7% 63.2% 10.6% 12.3% 10.9% 12.3%

SMID Value Composite Inception Date: 7.31.2010 / See Disclosure – Performance

The Cambiar Small-Mid Cap Value (SMID) portfolio posted a relatively in-line return vs. the Russell 2500 Value index in the second quarter. Positive security

selection was offset by modest cash drag and the portfolio’s non-exposure to Energy stocks, which continued their strong run in 2021. Since inception in

Cambiar SMID Value Commentary | 2Q 20212

2010, the SMID Value portfolio has compiled a strong record of consistent excess returns vs. the benchmark – outperforming in 71% of rolling 3-year periods and 93% of rolling 5-year periods.

Trade activity in the quarter was comprised of five new buys and three liquidations. New purchases were skewed to the Technology and Industrials sectors, although there was no underlying narrative driving the activity (i.e., unique company-specific opportunities). The sales in the quarter were almost all of the positive variety; i.e., stocks appreciating to our estimate of fair value. As mentioned, a slightly elevated cash position (~6%) in the quarter weighed on relative results. The net purchase activity subsequently lowered portfolio cash levels to ~2% by quarter-end, which we view to be a fully invested portfolio.

In reviewing both the quarter and year-to-date returns, we are encouraged that the SMID Value portfolio has been able to keep pace with the benchmark, given the underlying return drivers in the small-mid market thus far in 2021. The strong preference for reopening stocks appears to be waning, with many of these stocks now back at (or above) their pre-pandemic price levels. We anticipate that attributes such as leverage ratios, free cashflow yield, and margins will begin to take on increased importance. If we are correct, the SMID Value portfolio should be very well-positioned.

Notable bright spots in the quarter include positive stock selection within the Consumer Discretionary and Industrials sectors. Within Discretionary, retailers Bed Bath & Beyond (BBBY) and Ulta Beauty moved higher in response to strong quarterly results. Ulta remains a beneficiary of normalizing consumer spend patterns, while Bed Bath & Beyond continues to execute on its turnaround plan under new CEO Mark Tritton. Since taking over the helm in 2019, Mr. Tritton has implemented a number of programs to reduce BBBY’s cost structure while investing in initiatives such as private labels that can boost margins. This path towards sustainable growth and profitability should result in continued upside for the stock price in the coming quarters/years.

Financials represent the largest sector allocation in the SMID Value portfolio as of quarter-end, and Cambiar’s holdings in the sector comprised an additional value-add in 2Q. While recognizing the positive correlations that exist within the sector, Cambiar has sought to invest in a broad mix of businesses that vary by industry and end market - examples include regional banks, insurance, and title insurers. Property and

casualty insurer American Financial Group (AFG) was a notable standout in the quarter, as the stock gained ~22% on strong earnings and improved pricing. The move in AFG helped to offset a decline in life reinsurer Reinsurance Group of America (RGA), whose earnings were impacted by a rise in COVID-related claims. RGA has been able to withstand this transitory uptick in costs via a very strong balance sheet (excess capital position) and solid earnings from the company’s other lines of business.

Cambiar’s non-participation in Communication Services and Energy hampered relative performance in the quarter, as both sectors posted strong returns. The portfolio’s ‘underperformance’ in Communication Services was due to not owning AMC Entertainment, the most recent chat room stock to surge in 2021. The voting machine mentality surrounding meme stocks remains very much in effect, but we anticipate that fundamentals (or lack thereof) will continue to be the primary driver of stock returns over a longer-term arc.

The rationale behind our absence in Energy is part industry, part fundamental. On a market structure basis, the time to invest in a commodity business is when there is a structural scarcity of supply, and there is no shortage of production capacity in the North American oil market. From a fundamental perspective, desired business characteristics such as strong capital discipline and consistent returns have been hard to find in smaller cap energy companies, particularly relative to other areas of the market. Cambiar’s current view towards Energy should not be interpreted as a permanent bias, as we continue to do work in the sector. But with current oil prices well above marginal costs, allocating new capital to energy stocks would be somewhat of a chasing exercise at this juncture.

While positive in the aggregate, Technology stocks trailed the broader market advance in the quarter, as investor sentiment has shifted toward more economically sensitive “reopening” names. Cambiar incurred some modest price weakness in a few of the portfolio’s tech holdings; WEX Inc., and ON Semiconductor were two individual names that weighed on performance in the quarter. Despite the short-term lag, Cambiar continues to favor technology companies where we see reasonable valuations and a structural growth opportunity.

Cambiar SMID Value Commentary | 2Q 20213

LOOKING AHEADAs we reach the halfway mark of 2021, smaller cap equities have posted strong gains amid widespread optimism regarding economic growth and the corresponding positive impact on corporate earnings. Yet with much of this good news largely reflected in current valuations, Cambiar anticipates returns in ensuing quarters to be more disparate in nature. The bar for stocks has been raised via a combination of elevated valuations and heightened investor expectations, and storm clouds in the form of potential tapering activities are beginning to build. Intra-year drawdowns in the smid cap market are common, and we do not expect 2021 to be any different in this regard.

At a macro level, all eyes will be on the Federal Reserve, as investors look for any signals about a potential change in monetary policy. In our view, the market’s consternation over dot plots, verbiage, and timing loses sight of the bigger takeaway – i.e., the economy

is well down the path of recovery, thus the need for crisis-level monetary support is no longer necessary. Whether tightening takes place in 2022 or 2023, it is almost certainly a when, not if, scenario. The resulting path for stocks will be a bumpier ride than the current glidepath, yet with elevated stock volatility comes price dislocations that can provide attractive attachment points for managers who are patient and properly prepared. That is the focus at Cambiar.

We appreciate your continued confidence in Cambiar Investors.

DISCLOSUREPerformance: The performance information represents the respective Cambiar strategy composite and may be preliminary. Returns are presented gross (g) and net (n) of management fees and include the reinvestment of all income. Gross and net returns have been reduced by transaction costs. Net returns are also reduced by actual investment advisory fees and other expenses that may be incurred in the management of the account. Gross returns for the Cambiar SMID Value Composite includes accounts with both gross and “pure” gross performance. “Pure” gross returns do not reflect the deduction of any expenses, including transaction costs. “Pure” gross returns are applicable to separately managed accounts that are part of broker-affiliated or broker-sponsored programs, including wrap programs, that waive commission costs or bundle fees including commissions (SMAs). “Pure” gross returns are supplemental information. SMAs often incur bundled fees, charged by the wrap sponsor or affiliated broker, that may include transaction costs, investment management, portfolio monitoring, consulting services, and custody fees. Net returns for SMAs are calculated by deducting the investment advisory fees from the client’s account as reported by the wrap sponsor or affiliated broker, or as received by Cambiar. Cambiar negotiates advisory fees with each individual client or relationship. Please refer to our Form ADV Part 2A for additional disclosures regarding our investment management fees. Net of fees performance reflects a blended fee schedule of all accounts within the relevant composite. Cambiar clients and mutual fund investors may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Returns are reported in U.S. dollars. Index returns include the reinvestment of all income, and assume no management, custody, transaction or other expenses. Each index is a broadly based index that reflects overall market performance and Cambiar’s returns may not be correlated to the index against which it is compared for a number of reasons including investment approach and number and types of holdings. Each index is unmanaged, and one cannot invest directly in an index. Cambiar’s past results do not necessarily indicate Cambiar’s future performance and, as is the case with all investment advisors who concentrate on equity investments, Cambiar’s future performance may result in a loss. The top/bottom contributors is for a representative portfolio in the strategy. A complete description of Cambiar’s performance calculation methodology, including a complete list of each security that contributed to the performance of the portfolios, is available upon request. Please contact Cambiar at 1-888-673-9950 for additional information.

SMID Value Benchmark: The Russell 2500™ Value Index is a float-adjusted, market capitalization-weighted index comprised of firms in the Russell 2500™ Index that experience lower price-to-book ratios and lower forecasted growth values. The Russell 2500 Index is a float-adjusted, market capitalization-weighted index that measures the performance of the 2,500 smallest companies in the Russell 3000® Index, which consists of 3,000 of the largest U.S. equities.

Certain information contained in this communication constitutes “forward-looking statements”, which are based on Cambiar’s beliefs, as well as certain assumptions concerning future events, using information currently available to Cambiar. Due to market risk and uncertainties, actual events, results, or performance may differ materially from that reflected or contemplated in such forward-looking statements. All information provided is not intended to be, and should not be construed as, investment, legal or tax advice. Nothing contained herein should be construed as a recommendation or endorsement to buy or sell any security, investment or portfolio allocation. Securities highlighted or discussed have been selected to illustrate Cambiar’s investment approach and/or market outlook. The portfolios are actively managed and securities discussed may or may not be held in client portfolios at any given time, do not represent all of the securities purchased, sold, or recommended by Cambiar, and the reader should not assume that investments in the securities identified and discussed were or will be profitable. As with any investments, there are risks to be considered. All material is provided for informational purposes only and there is no guarantee that the opinions expressed herein will be valid beyond the date of this presentation.

For statistics definitions, please visit www.cambiar.com/definitions.

Russell: Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a presentation of Cambiar Investors, LLC. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Cambiar’s presentation thereof.

Cambiar SMID Value Commentary | 2Q 20214