Peter G. Pennal

Closed-End Investment Fund/Investment Trust

KBSH Capital Management is a growth manager that employs fundamental financial analysis and a disciplined security selection process. The firm seeks to maintain above average risk-adjusted performance over the long-term. KBSH's equity selection approach is based on bottom-up analysis. They seek growth companies with strong sales, superior cash flows, high ROE and reasonable valuations. Other considerations include management strength, industry dynamics, the integrity of accounting policies and the quality of the balance sheet. KBSH tends to invest in the stocks of US and Canadian companies in the finance, technology services and industrial services sectors. The firm invests across all market-caps and maintains a high turnover rate. KBSH's fixed-income management begins with a macroeconomic outlook. The firm employs interest rate forecast to determine portfolio duration and term structure. Sector and security selection results from a combination of rate levels, yield spreads and credit analysis.