CRM Funds 3Q 2018 Newsletter.Indd

Third Quarter 2018 Fund Newsletter

Cramer Rosenthal McGlynn, LLC is a leading value-oriented CRM Mutual Fund Trust investment firm with approximately $6 billion in assets under Cramer Rosenthal McGlynn, LLC management. Since the firm was founded in 1973, our 520 Madison Avenue, 20th Floor client list has grown to include corporate and public pension plans, endowments and foundations, hospitals, community New York, NY 10022 and religious organizations, Taft-Hartley and multi-employer T 212.326.5325 funds as well as individual and family trusts. The intellectual www.crmfunds.com coherence of our investment philosophy is a genuine strength. Companies we buy and hold are characterized by three attributes: change, neglect, and valuation. The hunt for these attributes provides a solid foundation for every stage of our investment process.

Current News

We have a long history of elevating top performing individuals into positions of increasing responsibility. You will recall we named Brian Harvey, CFA as Director of Research at the beginning of 2017. Brian joined CRM in 2005 and has done an outstanding job of leading our research team and ensuring the continued consistent adherence to our philosophy and process. He has Contents also worked with the team to improve certain workfl ows, evaluate Third Quarter 2018 Fund Newsletter new data and risk management tools, and generally improve our Current News 1 collective productivity. In recognition of these accomplishments Market Commentary 2 -- and his strong performance leading our Small Cap Value All Cap Value 4 strategy -- we are pleased to announce he is being promoted to Large Cap Opportunity 6 join Jay Abramson as co-CIO. Mid Cap Value 8 Small/Mid Cap Value 10 Collaboration is one of the hallmarks of our fi rm and for a number Small Cap Value 12 of years we have had a Management Committee overseeing all Fund Summary 14 facets of our business. In order to further streamline decision Investment Philosophy & Process 15 making and oversight, we are converting to an Executive Important Disclosures 17 Committee, which will be comprised of our CEO Jay Abramson, our President Chris Barnett, and Brian Harvey. Jay, who has been with CRM for more than 33 years, has been instrumental in the development of our investment approach and the overall leadership of the fi rm. Chris has been with the fi rm for more than 20 years and has been a key member of our leadership group for more than “I have seen a lot of markets. a decade. He has been our principal representative with clients I have seen a lot of fads and and consultants and an important contributor to our key strategic diff erent styles of investing. decisions over this time. An important element for successfully investing in stocks We have decided there is less opportunity for us to distinguish is not to follow the crowd, ourselves in a dedicated large cap strategy. Accordingly, we have but to follow the road less made the decision to wind down that discrete strategy. We therefore traveled.” invite our Large Cap clients to migrate to our All Cap Value strategy. Our approach to All Cap is true to the name…it includes ideas from Gerry Cramer our Small, Smid, and Mid strategies as well as select large cap Former Chairman Emeritus companies which demonstrate our core change/transformation and relative neglect characteristics. All Cap, in particular, is a return to our founding roots when it was our only investment product.

Market Commentary

The U.S. markets continued to climb the Wall of Worry. Despite concerns over trade talks with China, emerging market fl are ups, and pending mid-term elections here in the U.S., the market rallied due to strong earnings as the early benefi ts from the Tax Cuts and Jobs Act supported results. U.S. gross domestic product (“GDP”) is expected to grow 3-4% this quarter following the robust 4% growth in 2Q18, an acceleration from the approximate 2.5% average growth witnessed for most of the post-recession period. Credit spreads continued to narrow this quarter and consumer confi dence was healthy. We are monitoring capital expenditure announcements in the U.S. for a potential supply side lift to GDP and any resolution of the global trade agreements could be another boost to the U.S. economy.

We did witness some changes in the market this quarter. Large cap stocks outperformed small cap stocks, which was a reversal from the trend earlier this year. The S&P 500 (total return) index returned 8% in 3Q18, its best quarter in ﬁ ve years, which topped the Russell 2000 by approximately 400 basis points. The U.S. dollar traded in a narrow band for most of the quarter compared to the rally experienced earlier this year. Larger cap stocks beneﬁ tted from President Trump’s pivot on trade talks and the removal of concerns over the passage of NAFTA (North American Free Trade Agreement) 2.0 and the European Union agreements.

The sector leadership also rotated this quarter. Healthcare, Industrials, and Telecom were the strongest performers while Materials, Energy, and Real Estate lagged. Technology, the leadership sector for the

2 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter fi rst half of 2018, began to falter late in the quarter. Interestingly, some of the highfl ying FANG (Facebook, Amazon, Netfl ix, Google) stocks were actually down during the month of September. The bloom may be coming off the rose for this group.

The Federal Reserve (the “Fed”) continued with its tightening program. The Fed Funds target rate increased 25 basis points following the September 26 meeting. The Fed has raised its target rate by 200 basis points during this campaign. The spread between the two year note rate and the 10-year bond rate declined from about 30 basis points at the beginning of July to the low 20 basis points range by the end of September. There has been increased rhetoric about what the fl attening of the yield curve is saying about the U.S. economy. However, a narrowing of this spread is not unusual during a Fed tightening cycle. We remain broadly constructive on banks stocks despite the fl attening of the curve as capital return actions remain robust, costs are well managed (through the use of technology and the closure of branches), and loan growth should benefi t from the resurgence of the U.S. economy despite increased competition from non-bank lenders.

Merger and acquisition (“M&A”) activity slowed this quarter with overall announcements down low single digits year over year. This quarter tends to be a seasonally slow period for capital markets related activity. However, the fundamental building blocks for M&A still remain in place: CEO conﬁ dence is high, credit markets are favorable, and valuations remain attractive. There also remains substantial dry powder at private equity ﬁ rms to pursue M&A.

Despite the positive capital markets environment and high level of consumer conﬁ dence, we still need to be mindful of risk in the global market. China remains the one of the biggest wildcards for U.S. markets. China Shenzhen A shares declined 10% this quarter and are now down 24% year to date. Trade talks with China remain contentious and tariff actions on both sides have escalated. The U.S. imposed tariffs of about $200 billion of Chinese imports at a 10% rate in September but this will increase to 25% in January 2019. A protracted trade battle between U.S. and China will not be positive for either market.

Emerging markets (EM) continue to be a challenge this year. The rally in the U.S. dollar, the Federal Reserve’s tightening campaign, and the currency mismatch on sovereign and corporate debt has hampered EM. We witnessed dramatic declines in the Turkish lira and the Argentinian peso this quarter. Emerging markets are facing a debt hangover caused, in part, by the global quantitative easing actions post the Great Recession, which made debt so readily available. As this global liquidity is removed, borrowers and countries will have to wrestle with rising funding costs and, in some cases, currency mismatches.

The U.S. mid-term elections are right around the corner. Historically, mid-term elections are negative for the stock market performance in the third quarter, but that has not been the case this cycle. Based on market polls, Democrats are expected to win the majority of seats in the House of Representatives while the Republicans are expected to hold the majority of seats in the Senate. A split government is generally not bad for the markets. But, as we have learned over the past few years, polls can be very misleading.

All that being said, it comes down to the individual stock for us. The global macro events are going to be push/pull for the companies in which we invest but, ultimately, the valuation creation rests with management being able to manage their businesses to drive value through the change events we are investing alongside. There remain plenty of idiosyncratic investment opportunities that ﬁ t our change, neglect, and valuation framework, and that remain undiscovered by the market. The level of corporate change remains robust (spin- offs, restructuring, new management, new products, divestitures, etc.) and valuations remain attractive for our holdings given the under earnings aspect of our investments. CRM Mutual Fund Trust Cramer Rosenthal McGlynn, LLC 520 Madison Avenue, 20th Floor New York, NY 10022 T 212.326.5325 www.crmfunds.com

CRM All Cap Value Fund

The All Cap Value Fund, under normal circumstances, invests at least Shares Institutional Investor 80% of its assets in a diversified portfolio of equity and equity related securities of U.S. and non-U.S. companies that are publicly traded on Ticker CRIEX CRMEX a U.S. securities market. There are no limits on the market capitalizations of companies in which the All Cap Value Fund may invest. Cusip 12626X833 12626X841 Expense Ratio Investing With Clarity for Over Three Decades Net1 1.26% 1.51% Cramer Rosenthal McGlynn is a leading value manager that strives to Min. Investment $1,000,000 $2,500 see potential and seize opportunity. We manage approximately $6 billion for institutions and individuals and we have followed Inception Date 10/24/2006 10/24/2006 a proven investment philosophy since 1973.

Portfolio Management Capitalizing on Change and Neglect Jay B. Abramson Our research team strives to invest at the intersection of change and Robert Maina neglect and the intellectual coherence of our investment philosophy Research Team offers a genuine benefit to our clients. Companies we buy and hold 13 Analysts are typically characterized by three attributes: change, neglect, and valuation.

FUND PERFORMANCE The information on the Funds’ performance represent past performance, Through September 30, 2018 which does not guarantee future results. If you invest in a Fund, your investment return and principal value will fluctuate, so that your shares, when CRIEX CRMEX R3000V 1 R30001 redeemed, may be worth more or less than their original cost. The Funds’ current performance may be lower or higher than the performance listed. 3Q 4.68% 4.65% 5.39% 7.12% Performance data current to the most recent month-end may be obtained at www.crmfunds.com. Performance of this fund would have been lower without YTD 6.82 6.47 4.17 10.57 fee waivers in effect. The Funds are subject to risks, which are described in the prospectus. In 1-YR 12.54 12.14 9.46 17.58 particular, when compared to mutual funds that focus on larger capitalization companies, shares of the Funds which generally are more volatile because 3-YR 14.68 14.42 13.73 17.06 of the exposure to smaller and mid capitalization companies, which may have more limited product lines and fewer capital resources. Value-based 5-YR 10.57 10.30 10.64 13.45 investments are subject to the risk that the broad market may not recognize their instrinsic values. 10-Yr 9.68 9.42 9.76 12.00 1For additional information, please reference Expense Ratio Disclosures on ICD* 7.05 6.78 6.66 8.83 Page 14 and Performance Disclosure on Page 17.

The gross expense ratios for the Institutional *Since Inception Date, please reference Performance Disclosure on Page and Investor Classes are 1.74% and 1.96%, 17. respectively.1

4 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter Fund Commentary1,2 Third Quarter 2018 Assets in Fund: $19 million As of September 30, 2018 Microsoft Corporation, CSX Corporation, Worldpay, Inc., DXC Technology Company, and Dover Corporation were top contributors to performance in the 2 Fund Characteristics third quarter. Microsoft reported very robust earnings in July and provided Fund R3000V R3000 positive guidance for fiscal year 2019. The forward year guidance supported Wtd Avg Mkt Cap (m) $79,305 $117,041 $207,182 our view that cloud-driven growth and margin lift is still in the early innings. The Wtd Median Mkt Cap (m) $21,269 $58,095 $75,325 company has opportunity to capture share through Azure, its cloud platform, P/E FY2 15.6x 14.0x 16.6x Price/Book 2.3x 2.0x 3.2x and its related technologies and services. Rail operator, CSX Corporation, Number of Holdings 43 2,114 3,024 appreciated on strong freight trends and improving service metrics as the Active Share 90% company rolls out its Precision Scheduled Railroading (PSR) with a new Board and management team. Worldpay, a leading online payment processing company, reported better-than-expected results and increased guidance for the As of June 30, 2018 3 fiscal year. The January merger of Vantiv and Worldpay is off to a strong start and Top Ten Holdings % of Fund we expect additional upside in the revenue and cost synergy targets into 2019. Tiffany & Co. 4.0 DXC Technology, a global IT services company, reported earnings that beat Microsoft Corporation 3.1 expectations. Management continues to deliver cost savings ahead of schedule Allergan plc 3.1 contributing to guidance towards the upper end of annual earnings targets. The CSX Corporation 3.0 strong performance from the digital business should offset declining contracts Danaher Corporation 3.0 and enable DXC to report positive total revenue growth. Shares of Dover Bank of America Corporation 2.9 Corporation, a diversified industrial manufacturer, outperformed as second United Technologies Corporation 2.9 quarter earnings exceeded expectations and the company’s new CEO, Richard Broadcom, Inc. 2.8 Tobin, outlined plans to deliver margin improvement by 2020. Wells Fargo & Company 2.7 Humana, Inc. 2.7 Leading detractors to performance were EQT Corporation, Boston Private Total 30.2% Financial Holdings, Inc., Microchip Technology Incorporated, Wells Fargo & Company, and Edgewell Personal Care Company. EQT Corporation, an Appalachian natural gas producer and pipeline, declined with continuing Sector Allocation as of September 30, 20182 negative sentiment around natural gas prices and delays in one of its large pipeline projects, the Mountain Valley Pipeline. Permitting issues delayed Fund R3000V R3000 the pipeline by a year, which in turn significantly increased costs. We believe Consumer Discretionary 10.9 9.6 14.4 the imminent spin-off of the company’s pipeline business should reveal the Consumer Staples 1.6 6.4 5.4 significant discount of both the E&P (exploration & production) and pipeline Energy 7.1 10.6 5.8 businesses. Boston Private Financial, a business and private bank, reported Financial Services 19.9 29.0 20.3 weaker-than-expected underlying earnings this quarter due to net interest Health Care 11.0 13.9 14.3 margin compression as deposit pricing became more competitive. The Materials & Processing 5.9 4.3 3.4 company has a number of initiatives underway to grow well-priced funding Producer Durables 16.1 8.0 10.7 in the second half of 2018. In addition, Boston Private plans to improve its Technology 22.0 9.1 21.3 efficiency through cost reduction efforts later this year. Microchip Technology, Utilities 5.6 9.0 4.6 a leader in analog semiconductors, provided disappointing guidance and was cautious about the demand environment. The company has encountered some

Holdings subject to change at any time. near-term challenges integrating recently acquired, Microsemi Corporation, as well as headwinds from tariffs. Microchip Technology has a strong track record of acquiring mismanaged businesses and significantly improving performance.

2 We expect the same will occur at Microsemi. Wells Fargo continues to Third Quarter 2018 Dollar experience negative regulatory and business practice headlines. However, TOP CONTRIBUTORS TOP DETRACTORS we believe the company is on a pathway to resolve all outstanding regulatory Microsoft Corporation EQT Corporation CSX Corporation Boston Private Financial Holdings, Inc. matters. Wells Fargo received a non-objection from the Federal Reserve earlier Worldpay, Inc. Microchip Technology Incorporated this year for its current capital plan. This increased buyback approval and its DXC Technology Company Wells Fargo & Company cost reduction efforts should drive meaningful earnings growth in the future. Dover Corporation Edgewell Personal Care Company Shares of Edgewell Personal Care, a manufacturer of personal care products such as Schick and Banana Boat, were weak as investors wait for further clarity 2 Year to Date 2018 Dollar around the recently announced expense reduction program. We believe the TOP CONTRIBUTORS TOP DETRACTORS company’s recent management changes and this expense reduction plan will Tiffany & Co. EQT Corporation ultimately drive earnings higher.. Microsoft Corporation Itron, Inc. CSX Corporation Wells Fargo & Company Worldpay, Inc. Edgewell Personal Care Company 1Please reference Expense Ratio Disclosure on Page 14. Energen Corporation Houghton Mifflin Harcourt Company 2Please reference Important Disclosures, Product Disclosure on Page 17. 3Indicates weight in fund as of June 30, 2018. Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter 5 CRM Mutual Fund Trust Cramer Rosenthal McGlynn, LLC 520 Madison Avenue, 20th Floor New York, NY 10022 T 212.326.5325 www.crmfunds.com

CRM Large Cap Opportunity Fund

The Large Cap Opportunity Fund, under normal circumstances, Shares invests at least 80% of its assets in a diversified portfolio of equity and Institutional Investor equity related securities of U.S. and non-U.S. companies with market Ticker CRIGX CRMGX capitalizations at the time of initial purchase similar to those in the Russell 1000 Value Index (“mid/large cap companies”) that are pub- Cusip 12628J105 12628J204 licly traded on a U.S. securities market. Expense Ratio Net1 0.66% 0.91% Investing With Clarity for Over Three Decades Min. Investment Cramer Rosenthal McGlynn is a leading value manager that strives to $1,000,000 $2,500 see potential and seize opportunity. We manage approximately $6 Inception Date 12/1/2005 12/1/2005 billion for institutions and individuals and we have followed a proven investment philosophy since 1973. Portfolio Management Robert Maina Capitalizing on Change and Neglect Mimi Morris

Our research team strives to invest at the intersection of change and Research Team neglect and the intellectual coherence of our investment philosophy 13 Analysts offers a genuine benefit to our clients. Companies we buy and hold are typically characterized by three attributes: change, neglect, and valuation.

1-YR 10.11 9.85 9.45 17.76 Mutual Fund investing involves market risk and it is possible to lose money in a fund. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic values. 3-YR 13.00 12.74 13.54 17.05 1For additional information, please reference Expense Ratio Disclosures on 5-YR 10.42 10.14 10.71 13.66 Page 14 and Performance Disclosure on Page 17.

10-YR 9.23 8.96 9.78 12.08 *Since Inception Date, please reference Performance Disclosure on Page 17. ICD* 7.45 7.19 7.51 9.16 The gross expense ratios for the Institutional and Investor Classes are 0.81% and 1.06%, respectively.1 6 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter Fund Commentary1,2 Third Quarter 2018 Assets in Fund: $85 million As of September 30, 2018 Worldpay, Inc., CSX Corporation, Microsoft Corporation, Dover Corporation, Fund Characteristics2 and Danaher Corporation were top contributors to performance in the third quarter. Worldpay, a leading online payment processing company, reported Fund R1000V R1000 better-than-expected results and increased guidance for the fiscal year. The Wtd Avg Mkt Cap (m) $94,983 $126,261 $224,001 Wtd Median Mkt Cap (m) $46,727 $69,834 $93,119 January merger of Vantiv and Worldpay is off to a strong start and we expect P/E FY2 14.4x 14.0x 16.7x additional upside in the revenue and cost synergy targets into 2019. Rail Price/Book 2.3x 2.1x 3.3x operator, CSX Corporation, appreciated on strong freight trends and improving Number of Holdings 38 727 984 service metrics as the company rolls out its Precision Scheduled Railroading Active Share 88% (PSR) with a new Board and management team. Microsoft reported very robust earnings in July and provided positive guidance for fiscal year 2019. The forward year guidance supported our view that cloud-driven growth and As of June 30, 2018 3 margin lift is still in the early innings. The company has opportunity to capture Top Ten Holdings % of Fund share through Azure, its cloud platform, and its related technologies and Tiffany & Co. 4.1 services. Shares of Dover Corporation, a diversified industrial manufacturer, Danaher Corporation 3.8 outperformed as second quarter earnings exceeded expectations and Bank of America Corporation 3.5 the company’s new CEO, Richard Tobin, outlined plans to deliver margin CSX Corporation 3.4 improvement by 2020. Danaher, a leading life sciences, environmental, dental, Microsoft Corporation 3.3 and applied markets focused company, performed well into the upcoming Broadcom, Inc. 3.2 spinoff of its dental business next year and anticipation of continued strong Occidental Petroleum Corporation 3.2 earnings performance in the second half of 2018. The company continues to NextEra Energy, Inc. 3.2 generate free cash flow in excess of earnings, putting the balance sheet in a United Technologies Corporation 3.1 strong position to continue accretive tuck in acquisitions. Parsley Energy, Inc. 3.0 Total 33.8% Leading detractors to performance were Microchip Technology Incorporated, Mohawk Industries, Inc., Halliburton Company, EQT GP Holdings LP, and Wells Fargo & Company. Microchip Technology, a leader in analog Sector Allocation as of September 30, 20182 semiconductors, provided disappointing guidance and was cautious about the demand environment. The company has encountered some near-term Fund R1000V R1000 challenges integrating recently acquired, Microsemi Corporation, as well as Consumer Discretionary 8.5 9.4 14.3 headwinds from tariffs. Microchip Technology has a strong track record of Consumer Staples 1.9 6.8 5.6 acquiring mismanaged businesses and significantly improving performance. Energy 10.1 10.8 5.8 We expect the same will occur at Microsemi. Shares of Mohawk Industries, Financial Services 24.1 28.1 20.0 the largest flooring manufacturer in the world, were pressured following a Health Care 12.4 14.6 14.1 very weak 2Q18 earnings report. The primary headwinds were supply chain Materials & Processing 5.3 4.2 3.1 issues with luxury vinyl tile (LVT) product and inflationary pressures in the Producer Durables 13.9 7.7 10.4 North America business. Despite current headwinds, Mohawk should start to see the benefit of increased pricing in all its businesses and an acceleration Technology 16.1 9.1 22.0 in growth driven by LVT. Halliburton, a provider of diversified oilfield services, Utilities 7.8 9.2 4.7 struggled in the quarter as the onshore oilfield services market deteriorated. Limited pipeline capacity taking oil out of the Permian basin has led oil Holdings subject to change at any time. producers to delay their drilling and completion activity, which in turn has temporarily tipped supply and demand out of balance. We believe that the

2 market balance will improve throughout 2019 as more pipes are turned on Third Quarter 2018 Dollar line. Shares of EQT GP Holdings, the holding entity for EQT Corporation’s TOP CONTRIBUTORS TOP DETRACTORS natural gas pipeline business, were hurt by delays on its Mountain Valley Worldpay, Inc. Microchip Technology Incorporated Pipeline project. Due to permitting issues, the pipeline was delayed by a year, CSX Corporation Mohawk Industries, Inc. Microsoft Corporation Halliburton Company which in turn substantially increased cost. We believe the pipeline will be built Dover Corporation EQT GP Holdings LP and investors are overly discounting the associated risk. Wells Fargo continues Danaher Corporation Wells Fargo & Company to experience negative regulatory and business practice headlines. However, we believe the company is on a pathway to resolve all outstanding regulatory Year to Date 2018 Dollar2 matters. Wells Fargo received a non-objection from the Federal Reserve earlier TOP CONTRIBUTORS TOP DETRACTORS this year for its current capital plan. This increased buyback approval and its Palo Alto Networks, Inc. Denstply Sirona, Inc. cost reduction efforts should drive meaningful earnings growth in the future. Tiffany & Co. Mohawk Industries, Inc. Microsoft Corporation EQT GP Holdings LP Worldpay, Inc. Halliburton Company CSX Corporation Philip Morris Internationals 1Please reference Expense Ratio Disclosure on Page 14. 2Please reference Important Disclosures, Product Disclosure on Page 17. 3 Indicates weight in fund as of June 30, 2018. 7 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter CRM Mutual Fund Trust Cramer Rosenthal McGlynn, LLC 520 Madison Avenue, 20th Floor New York, NY 10022 T 212.326.5325 www.crmfunds.com

CRM Mid Cap Value Fund

The Mid Cap Value Fund, under normal circumstances, invests at Shares least 80% of its assets in a diversified portfolio of equity and equity Institutional Investor related securities of companies with market capitalizations at the time Ticker CRIMX CRMMX of initial purchase similar to those in the Russell Midcap Value Index (“mid cap companies”) that are publicly traded on a U.S. securities Cusip 92934R769 92934R777 market. Expense Ratio1 0.95% 1.16% Investing With Clarity for Over Three Decades Min. Investment $1,000,000 $2,500 Cramer Rosenthal McGlynn is a leading value manager that strives to Inception Date 1/6/1998 9/20/2000 see potential and seize opportunity. We manage approximately $6 billion for institutions and individuals and we have followed a proven investment philosophy since 1973. Portfolio Management Brittain Ezzes Capitalizing on Change and Neglect Thad Pollock Our research team strives to invest at the intersection of change and Research Team neglect and the intellectual coherence of our investment philosophy 13 Analysts offers a genuine benefit to our clients. Companies we buy and hold are typically characterized by three attributes: change, neglect, and valuation.

1 1 when redeemed, may be worth more or less than their original cost. The CRIMX CRMMX RM IDV RMID Funds’ current performance may be lower or higher than the performance listed. Performance data current to the most recent month-end may be 3Q 3.53% 3.50% 3.30% 5.00% obtained at www.crmfunds.com.

YTD 11.56 11.45 3.13 7.46 The Funds are subject to risks, which are described in the prospectus. In particular, when compared to mutual funds that focus on larger 1-YR 17.65 17.47 8.81 13.98 capitalization companies, shares of the Funds which generally are more volatile because of the exposure to smaller and mid capitalization 3-YR 16.79 16.56 13.08 14.50 companies, which may have more limited product lines and fewer capital resources. Value-based investments are subject to the risk that the broad market may not recognize their instrinsic values. 5-YR 11.98 11.76 10.71 11.65 1For additional information, please reference Expense Ratio Disclosures on 10-YR 10.78 10.55 11.28 12.30 Page 14 and Performance Disclosure on Page 17.

ICD (1/6/1998)* 11.73 -- 9.46 9.56 *Since Inception Date, please reference Performance Disclosure on Page 17. ICD (9/20/2000)* -- 10.83 10.22 8.79

8 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter Fund Commentary1,2 Third Quarter 2018 Assets in Fund: $585 million As of September 30, 2018 Dover Corporation, Teledyne Technologies, Inc., RPM International, Inc., Xylem, Fund Characteristics2 Inc., and FLIR Systems, Inc. were top contributors to performance in the third quarter. Shares of Dover Corporation, a diversified industrial manufacturer, Fund RMidV RMid outperformed as second quarter earnings exceeded expectations and the Wtd Avg Mkt Cap (m) $10,935 $14,960 $15,732 company’s new CEO, Richard Tobin, outlined plans to deliver margin improvement Wtd Median Mkt Cap (m) $9,044 $13,608 $14,400 by 2020. Teledyne Technologies, a diversified manufacturer of test and P/E FY2 18.9x 14.9x 16.7x Price/Book 2.7x 2.0x 2.7x measurement equipment, aerospace and defense electronics, and digital imaging Number of Holdings 47 594 790 products and software reported second quarter earnings significantly exceeding Active Share 94% consensus expectations. We continue to believe investors are underestimating its earnings and free cash flow potential and we anticipate the company will continue to demonstrate better-than-expected business results in coming As of June 30, 2018 quarters. RPM International is a manufacturer of various specialty chemicals Top Ten Holdings3 % of Fund including paints, protective coatings, and adhesives. Although earnings in the RPM International, Inc. 4.0 quarter continued to be hurt by higher raw material costs, the stock responded Tiffany & Co. 3.9 favorably. We think these near-term pressures are understood and investors are more focused on potential operating improvement driven by the 2020 MAP to IHS Markit, Ltd. 2.9 Growth Plan. Management committed to providing more detail behind this plan Bio-Rad Laboratories, Inc. 2.7 at an investor event in the fourth quarter. Xylem, a manufacturer of equipment Ametek, Inc. 2.6 for water and wastewater industries, rose after reporting a strong quarter and Dover Corporation 2.6 raising guidance, despite concerns about the impact of inflation and a strong Vail Resorts, Inc. 2.6 U.S. dollar. In addition, the company provided support for strength continuing into Energen Corporation 2.6 2019 with organic orders up high single digits. Xylem’s leverage is now down to Equinix, Inc. 2.6 approximately 2.3x following the acquisitions of Sensus and Pure Technologies. KeyCorp 2.5 With strong free cash flow generation expected in the second half, we believe Total 29.0% the company is positioned to pursue further deals in the water sector. FLIR Systems, a manufacturer of thermal imaging systems for a variety of applications in commercial and defense markets, continued to exceed expectations with its

2 second quarter earnings report. The new management team is executing very well Sector Allocation as of September 30, 2018 and with net cash on the balance sheet, we believe accretive capital allocation Fund RMidV RMid could provide further upside. Consumer Discretionary 12.9 11.9 14.5 Consumer Staples 2.0 4.8 4.0 Leading detractors to performance during the quarter were Mohawk Industries, Inc., Microchip Technology Incorporated, TreeHouse Foods, Inc., Vulcan Energy 8.4 8.1 5.5 Materials Company, and Nasdaq, Inc. Shares of Mohawk Industries, the largest Financial Services 18.1 32.2 25.6 flooring manufacturer in the world, were pressured following a very weak 2Q18 Health Care 5.6 6.8 9.9 earnings report. The primary headwinds were supply chain issues with luxury Materials & Processing 10.2 7.1 6.3 vinyl tile (LVT) product and inflationary pressures in the North America business. Producer Durables 19.1 11.4 13.2 Despite current headwinds, Mohawk should start to see the benefit of increased Technology 13.6 7.1 14.6 pricing in all its businesses and an acceleration in growth driven by LVT. Microchip Utilities 10.1 10.7 6.4 Technology, a leader in analog semiconductors, provided disappointing guidance and was cautious about the demand environment. The company has encountered Holdings subject to change at any time. some near-term challenges integrating recently acquired, Microsemi Corporation, as well as headwinds from tariffs. Microchip Technology has a strong track record of acquiring mismanaged businesses and significantly improving performance. Third Quarter 2018 Dollar2 We expect the same will occur at Microsemi. TreeHouse Foods, the leading North American private label foods manufacturer, underperformed as investors grew TOP CONTRIBUTORS TOP DETRACTORS concerned about heightened logistics costs for the consumer staples complex. Dover Corporation Mohwak Industries, Inc. Teledyne Technologies, Inc. Microchip Technology Incorporated We remain enthusiastic about margin improvement prospects ahead under the RPM International, Inc. TreeHouse Foods, Inc. leadership of Steve Oakland, the company’s new CEO. Vulcan Materials, a leading Xylem, Inc. Vulcan Materials Company domestic aggregates company, experienced weaker-than-expected margins due FLIR Systems, Inc. Nasdaq, Inc. to heightened freight costs. We expect improved pricing and volumes trends bode well for upcoming results. Nasdaq, a stock exchange operator and provider Year to Date 2018 Dollar2 of financial data services, reported better-than-expected earnings this quarter. TOP CONTRIBUTORS TOP DETRACTORS However, concerns have been raised recently about the exchange industry’s Energen Corporation Mohawk Industries, Inc. market data and access pricing as the U.S. Securities and Exchange Commission Tiffany & Co. Dentsply Sirona, Inc. could look to increase oversight. This business is a modestly sized business line RPM International, Inc. Hubbell Incorporated for Nasdaq and, importantly, is not part of the long-term growth strategy. Nutanix, Inc. Microchip Technology Incorporated Palo Alto Networks, Inc. Houghton Mifflin Harcourt Company 1Please reference Expense Ratio Disclosure on Page 14. 2Please reference Important Disclosures, Product Disclosure on Page 17. 3 Indicates weight in fund as of June 30, 2018. 9 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter CRM Mutual Fund Trust Cramer Rosenthal McGlynn, LLC 520 Madison Avenue, 20th Floor New York, NY 10022 T 212.326.5325 www.crmfunds.com

CRM Small/Mid Cap Value Fund

The Small/Mid Cap Value Fund, under normal circumstances, invests at least 80% of its assets in a diversified portfolio of equity and equity Shares Institutional Investor related securities of companies with market capitalizations at the time of initial purchase similar to those in the Russell 2500 Value Index or Ticker CRIAX CRMAX in the S&P MidCap 400 Value Index (together, “small/mid cap companies”) that are publicly traded on a U.S. securities market. Cusip 92934R116 92934R124 Expense Ratio1 0.94% 1.15% Investing With Clarity for Over Three Decades Min. Investment $1,000,000 $2,500 Cramer Rosenthal McGlynn is a leading value manager that strives to see potential and seize opportunity. We manage approximately $6 Inception Date 9/1/2004 9/1/2004 billion for institutions and individuals and we have followed a proven investment philosophy since 1973. Portfolio Management Capitalizing on Change and Neglect Brittain Ezzes Thad Pollock Our research team strives to invest at the intersection of change and neglect and the intellectual coherence of our investment philosophy Research Team 13 Analysts offers a genuine benefit to our clients. Companies we buy and hold are typically characterized by three attributes: change, neglect, and valuation.

FUND PERFORMANCE The information on the Funds’ performance represent past performance, which does not guarantee future results. If you invest in a Fund, your Through September 30, 2018 investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The CRIAX CRMAX R2500V 1 R2500 1 Funds’ current performance may be lower or higher than the performance listed. Performance data current to the most recent month-end may be obtained at www.crmfunds.com. 3Q 5.29% 5.27% 2.67% 4.70% The Funds are subject to risks, which are described in the prospectus. YTD 12.58 12.40 5.75 10.41 In particular, when compared to mutual funds that focus on larger capitalization companies, shares of the Funds which generally are 1-YR 18.88 18.66 10.24 16.19 more volatile because of the exposure to smaller and mid capitalization companies, which may have more limited product lines and fewer 3-YR 15.26 15.01 14.50 16.12 capital resources. Value-based investments are subject to the risk that the broad market may not recognize their instrinsic values. 5-YR 9.84 9.61 9.98 11.36 1For additional information, please reference Expense Ratio Disclosures on 10-YR 10.60 10.35 10.52 12.02 Page 14 and Performance Disclosure on Page 17.

ICD* 10.03 9.77 9.27 10.43 *Since Inception Date, please reference Performance Disclosure on Page 17.

100 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter 1,2 Assets in Fund: $304 million Fund Commentary Third Quarter 2018 As of September 30, 2018

2 Clean Harbors, Inc., Omnicell, Inc., Teledyne Technologies, Inc., RPM International, Fund Characteristics Inc., and Worldpay, Inc. were top contributors to performance in the third quarter. Fund R2500V R2500 Clean Harbors, a domestic incinerator of hazardous waste and a provider of Wtd Avg Mkt Cap (m) $6,757 $4,958 $5,318 environmental remediation services, reported strong quarterly performance as well Wtd Median Mkt Cap (m) $4,058 $4,487 $4,578 as increased annual guidance. Industrial production and waste generation from its P/E FY2 18.6x 14.6x 16.6x customers is increasing, benefitting volumes in several of its business lines. Price/Book 2.6x 1.7x 2.4x Continued upside to profitability and cash flow, further balance sheet deployment, Number of Holdings 47 1,749 2,521 and new environmental regulation, should further increase shareholder value. Active Share 95% Omnicell, a manufacturer and marketer of acute hospital medicine cabinets and medicine adherence products for pharmacies, had strong quarterly earnings. The demand outlook for automation equipment in its segments continues to increase, As of June 30, 2018 as does demand for its new products, which we think should more than double its 3 Top Ten Holdings % of Fund addressable markets. Teledyne Technologies, a diversified manufacturer of test RPM International, Inc. 4.0 and measurement equipment, aerospace and defense electronics, and digital TriNet Group, Inc. 3.0 imaging products and software reported second quarter earnings significantly Associated Banc-Corp 3.0 exceeding consensus expectations. We continue to believe investors are Omnicell, Inc. 2.9 underestimating its earnings and free cash flow potential and the company will continue to demonstrate better-than-expected business results in coming quarters. Performance Food Group Company 2.7 RPM International is a manufacturer of various specialty chemicals including Vail Resorts, Inc. 2.6 paints, protective coatings, and adhesives. Although earnings in the quarter NiSource, Inc. 2.5 continued to be hurt by higher raw material costs, the stock responded favorably. Bio-Rad Laboratories, Inc. 2.5 We think these near-term pressures are understood and investors are more focused Hancock Whitney Corporation 2.5 on potential operating improvement driven by the 2020 MAP to Growth Plan. Commvault Systems, Inc. 2.5 Management committed to providing more detail behind this plan at an investor Total 28.2% event in the fourth quarter. Worldpay, a leading online payment processing company, reported better-than-expected results and increased guidance for the fiscal year. The January merger of Vantiv and Worldpay is off to a strong start and Sector Allocation as of September 30, 20182 we expect additional upside in the revenue and cost synergy targets into 2019. Fund R2500V R2500 Leading detractors to performance during the quarter were Performance Food Consumer Discretionary 7.3 11.3 14.4 Group Company, TreeHouse Foods, Inc., GCP Applied Technologies, Inc., Cree, Consumer Staples 4.4 3.2 2.5 Inc., and Webster Financial Corporation. Performance Food Group, a domestic Energy 6.7 7.5 4.8 distributor of food, snacks, and beverages came under pressure from incremental Financial Services 26.1 37.7 25.5 costs associated with ramping its salesforce in its primary segment. This created Health Care 8.4 5.4 13.4 margin pressure, which we think could persist for the next few quarters. However, Materials & Processing 9.6 7.8 7.4 our expectation is this will ultimately lead to improved case growth. TreeHouse Producer Durables 19.4 14.0 14.7 Foods, the leading North American private label foods manufacturer, underperformed Technology 12.9 6.7 13.2 as investors grew concerned about heightened logistics costs for the consumer Utilities 5.2 6.5 4.0 staples complex. We remain enthusiastic about margin improvement prospects ahead under the leadership of Steve Oakland, the company’s new CEO. GCP Applied Technologies, a producer of specialty construction chemicals and building Holdings subject to change at any time. materials, reported another disappointing quarter. The culprits this period included higher input and logistics costs, exchange rate volatility, and project timing. While

2 recent results have been frustrating, we believe margins are well below their Third Quarter 2018 Dollar potential and a combination of pricing and restructuring actions should help them TOP CONTRIBUTORS TOP DETRACTORS recover. We also think new COO, Randy Dearth, may help the company improve Clean Harbors, Inc. Performance Food Group Company execution. Finally, the balance sheet continues to be strong, allowing optionality for Omnicell, Inc. TreeHouse Foods, Inc. Teledyne Technologies, Inc. GCP Applied Technologies, Inc. further tuck-in acquisitions. Cree is transitioning from selling primarily LEDs and RPM International, Inc. Cree, Inc. lighting products to selling silicon carbide wafers and power and radio-frequency Worldpay, Inc. Webster Financial Corporation (RF) components. Concerns over tariffs and the rate and pace of electric vehicle adoption pressured the shares in September. We believe these concerns are only Year to Date 2018 Dollar2 temporary. Shares of Webster Financial, a Connecticut-based bank, declined due TOP CONTRIBUTORS TOP DETRACTORS to a broad-based sell-off in financial stocks, driven by weaker commercial loan Omnicell, Inc. MACOM Technology Solutions Holdings, Inc. growth trends for the banking industry. We believe the company is going to maintain Nutanix, Inc. Hubbell Incorporated strong margins, despite industry headwinds, based on its differentiated HSA deposit Clean Harbors, Inc. Basic Energy Services, Inc. base. RPM International, Inc. GCP Applied Technologies, Inc. 1 FLIR Systems, Inc. Empire State Realty Trust Please reference Expense Ratio Disclosure on Page 14. 2Please reference Important Disclosures, Product Disclosure on Page 17. 3Indicates weight in fund as of June 30, 2018. Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter 11 CRM Mutual Fund Trust Cramer Rosenthal McGlynn, LLC 520 Madison Avenue, 20th Floor New York, NY 10022 T 212.326.5325 www.crmfunds.com

CRM Small Cap Value Fund

The Small Cap Value Fund, under normal circumstances, invests at Shares Institutional Investor least 80% of its assets in a diversified portfolio of equity and equity Ticker related securities of companies with market capitalizations at the time CRISX CRMSX of initial purchase similar to those in the Russell 2000 Value Index Cusip 92934R785 92934R793 (“small cap companies”) that are publicly traded on a U.S. securities market. Expense Ratio1 0.92% 1.16% Min. Investment $1,000,000 $2,500 Investing With Clarity for Over Three Decades Cramer Rosenthal McGlynn is a leading value manager that strives to Inception Date 1/27/1998 10/1/1995 see potential and seize opportunity. We manage approximately $6 billion for institutions and individuals and we have followed a proven investment philosophy since 1973. Portfolio Management Bernie Frojmovich Capitalizing on Change and Neglect Brian Harvey, CFA Our research team strives to invest at the intersection of change and Research Team neglect and the intellectual coherence of our investment philosophy 13 Analysts offers a genuine benefit to our clients. Companies we buy and hold are typically characterized by three attributes: change, neglect, and valuation.

YTD 3.74 3.55 7.14 11.51 The Funds are subject to risks, which are described in the prospectus. In particular, when compared to mutual funds that focus on larger capitalization 1-YR 7.46 7.19 9.33 15.24 companies, shares of the Funds which generally are more volatile because of the exposure to smaller and mid capitalization companies, which may 3-YR 15.61 15.34 16.11 17.10 have more limited product lines and fewer capital resources. Value-based investments are subject to the risk that the broad market may not recognize their instrinsic values. 5-YR 10.68 10.43 9.91 11.07 1For additional information, please reference Expense Ratio Disclosures on 10-YR 10.36 10.11 9.52 11.11 Page 14 and Performance Disclosure on Page 17.

ICD (1/27/1998)* 9.48 -- 8.87 8.39 *Since Inception Date, please reference Performance Disclosure on Page 17. ICD (10/1/1995)* -- 11.00 10.14 9.11

12 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter Fund Commentary1,2 Third Quarter 2018 Assets in Fund: $368 million As of September 30, 2018 Top contributors to performance during the third quarter were Regis Corporation, Acxiom Corporation, Omnicell, Inc., Clean Harbors, Inc., and Albany International 2 Fund Characteristics Corp. Regis Corporation, a large operator and franchisor of salons, reported better- Fund R2000V R2000 than-expected earnings as management continues to transform the business into a Wtd Avg Mkt Cap (m) $2,629 $2,137 $2,406 more franchised model. We continue to believe we are in the early innings of this Wtd Median Mkt Cap (m) $2,728 $1,996 $2,212 significant change. We ultimately expect the changed company to trade at a higher P/E FY2 17.6x 13.9x 16.2x multiple and have a remarkably improved capital structure. Acxiom Corporation, a Price/Book 2.3x 1.5x 2.3x marketing services and technology company, announced the sale of its marketing Number of Holdings 48 1,387 2,040 services and audience solutions business to Interpublic Group of Cos., Inc. for $2.3 Active Share 96% billion, well above analyst expectations. The remaining business, LiveRamp, is in our view a highly attractive, fast-growing software company delivering critical technology As of June 30, 2018 to programmatic advertisers. Omnicell, a manufacturer and marketer of acute 3 Top Ten Holdings % of Fund hospital medicine cabinets and medicine adherence products for pharmacies, had Regis Corporation 4.6 strong quarterly earnings. The demand outlook for automation equipment in its Boston Private Financial Holdings, Inc. 3.1 segments continues to increase, as does demand for its new products, which should Cott Corporation 3.1 more than double its addressable markets. Clean Harbors, a domestic incinerator of Omnicell, Inc. 3.1 hazardous waste and a provider of environmental remediation services, reported strong quarterly performance as well as increased annual guidance. Industrial Associated Banc-Corp 3.0 production and waste generation from its customers is increasing, benefitting Southwest Gas Holdings, Inc. 2.8 volumes in several of its business lines. We see continued upside to profitability and Black Hills Corporation 2.7 cash flow, further balance sheet deployment, and new environmental regulation, First Midwest Bancorp, Inc. 2.7 which we think should further increase shareholder value. Albany International, a Performance Food Group Company 2.6 leading global player in machine clothing for the paper industry and a niche supplier Mueller Water Products, Inc. 2.6 to the next generation aerospace engine, is seeing significant growth as both Airbus Total 30.3% and Boeing ramp the Leap engine on next generation single body aircrafts.

Extreme Networks, Inc., Venator Materials plc, Boston Private Financial Holdings, 2 Sector Allocation as of September 30, 2018 Inc., Performance Food Group Company, and GCP Applied Technologies, Inc. were Fund R2000V R2000 leading detractors during the third quarter. Extreme Networks, a network Consumer Discretionary 8.2 12.1 15.1 infrastructure equipment developer, provided disappointing guidance for fiscal 2019 Consumer Staples 9.5 2.3 2.4 when it reported June quarterly results in August. The company is experiencing challenges integrating the data center business acquired from Brocade at the end Energy 4.3 7.4 4.7 of 2017. We believe management has reset expectations appropriately and expect Financial Services 30.8 39.7 24.5 the stock to recover as the challenges are overcome. Venator Materials, a Health Care 3.5 4.9 16.2 manufacturer of titanium dioxide, declined following news that the reconstruction of Materials & Processing 8.4 5.8 6.8 one of its plants would cost more than initially anticipated. At the same time, the Producer Durables 15.9 11.7 13.5 titanium dioxide industry is facing downward price pressure in Europe and elevated Technology 12.4 9.6 12.8 raw material prices. Given the uncertainty, we chose to exit the position as we saw Utilities 7.0 6.6 4.1 better risk/reward elsewhere. Boston Private Financial, a business and private bank, reported weaker-than-expected underlying earnings this quarter due to net interest margin compression as deposit pricing became more competitive. The Holdings subject to change at any time. company has a number of initiatives underway to grow well-priced funding in the second half of 2018. In addition, Boston Private plans to improve its efficiency through cost reduction efforts later this year. Performance Food Group, a domestic 2 Third Quarter 2018 Dollar distributor of food, snacks, and beverages, came under pressure from incremental TOP CONTRIBUTORS TOP DETRACTORS costs associated with ramping its salesforce in its primary segment. This created Regis Corporation Extreme Networks, Inc. margin pressure, which we think could persist for the next few quarters. However, Acxiom Corporation Venator Materials plc our expectation is this will ultimately lead to improved case growth. GCP Applied Omnicell, Inc. Boston Private Financial Holdings, Inc. Technologies, a producer of specialty construction chemicals and building materials, Clean Harbors, Inc. Performance Food Group Company Albany International Corp. GCP Applied Technologies, Inc. reported another disappointing quarter. The culprits this period included higher input and logistics costs, exchange rate volatility, and project timing. While recent

2 results have been frustrating, we believe margins are well below their potential and Year to Date 2018 Dollar a combination of pricing and restructuring actions should help them recover. We TOP CONTRIBUTORS TOP DETRACTORS also think new COO, Randy Dearth, may help the company improve execution. Regis Corporation Extreme Network, Inc. Finally, the balance sheet continues to be strong, allowing optionality for further tuck- Omnicell, Inc. Venator Materials plc in acquisitions. Acxiom Corporation Jeld-Wen Holding, Inc. CONMED Corporation Coca-Cola Bottling Co. Consolidated G-III Apparel Group, Ltd. Keane Group, Inc. 1Please reference Expense Ratio Disclosure on Page 14. 2Please reference Important Disclosures, Product Disclosure on Page 17. 3Indicates weight in fund as of June 30, 2018. Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter 13 Fund Summary

FUND/INCEPTION FUND VEHICLE MINIMUM STATUS ASSETS 9/30/2018

CRM All Cap Value $19 million Mutual Fund, CRIEX (Institutional) $1 Million Open October 2006 Mutual Fund, CRMEX (Investor) $2,500 Open

CRM Mid Cap Value $585 million Mutual Fund, CRIMX (Institutional) $1 Million Open January 1998 Mutual Fund, CRMMX (Investor) $2,500 Open

CRM Large Cap Opportunity $85 million Mutual Fund, CRIGX (Institutional) $1 Million Open December 2005 Mutual Fund, CRMGX (Investor) $2,500 Open

CRM Small/Mid Cap Value $304 million Mutual Fund, CRIAX (Institutional) $1 Million Open September 2004 Mutual Fund, CRMAX (Investor) $2,500 Open

CRM Small Cap Value $368 million Mutual Fund, CRISX (Institutional) $1 Million Open October 1995 Mutual Fund, CRMSX (Investor) $2,500 Open

1Expense Ratio Disclosure

The net expense ratios are the current annualized expense ratio as stated in the CRM Funds prospectus dated October 28, 2017, and will fluctuate over time. CRM has a contractual obligation to waive a portion of its fees through November 1, 2018 and to assume certain expenses of the Fund to the extent that the total annual fund operating expenses, excluding taxes, extraordinary expenses, brokerage commissions, interest and acquired fund fees and expenses, exceed 1.50% and 1.25% for the CRM All Cap Value Fund of average daily net assets of Investor Shares and Institutional Shares, respectively and may be terminated by a vote of the Board of Trustees. Performance would have been lower in the absence of fee waivers and expense reimbursements.

14 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter Investment Philosophy & Process

Our track record, spanning over 45 years, is testament to our success in serving clients and providing strong investment performance. Clients benefit from consistent application of one cohesive philosophy and process, implemented by a team with diverse experience in appraising the intrinsic value of companies.

Investment Philosophy CRM views investment prospects on a long-term basis. Our relative value oriented investment philosophy seeks to outperform the broad market and pertinent indices over a full market cycle by participating in good market periods and limiting declines in poor periods. CRM believes that successful investing is a result of recognizing and responding to changes that may positively impact the future prospects of a business enterprise. These changes often lead to a temporary misunderstanding or relative neglect which reduces the risks of investing at a point in time. As relative value investors, we seek to invest in companies which are trading at a discount to their own history and peers based upon prospective free cash flow and earnings. In summary, our investment approach is predicated on change, neglect, and valuation.

Change CRM seeks to identify change at an early stage that may be material to the future operations of publicly traded companies. The financial markets are rich with change. On a regular basis, investors are presented with acquisitions, divestitures, spin offs, cost restructurings, geographic expansions, management changes, regulatory changes, new products, joint ventures, and capital returns to shareholders. Based on the experience of our research team, we identify many situations where these changes lead to an attractive investment thesis either in the company being directly impacted by the observed change and/or in a broader set of companies which are similarly affected.

Neglect In its earliest stages, change tends to be greeted with skepticism. The uncertainty resulting from the change creates a period of relative neglect or lowered expectations as investors wait for more clarity. We try to evaluate neglect by studying sell side analyst coverage, institutional ownership, key concepts in behavioral finance such as over and under reactions to news flow, and having a differentiated view about the future outlook for the business.

Valuation When change meets neglect, the intrinsic value of a company may exceed the current stock price. We appraise the business using a number of methodologies, but most are dependent upon our modeling of future free cash flows. We are seeking to normalize the cash flow and earnings streams for one time or unusual items which themselves often create neglect. As relative value investors, we are looking to invest in companies which are trading at a discount to their own history, peers, and when appropriate, our assessment of its value to a strategic or private equity buyer.

15 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter 15 Investment Process CRM generates ideas from both qualitative (approximately 75%) and quantitative (approximately 25%) sources. Qualitative ideas emanate from: company presentations, news services, due diligence on existing holdings, our internal research data base, leveraging investment themes, and rich text screening for specific change expressions such as acquisition, restructuring, etc. The quantitative sources include: screening for stocks which have underperformed the market or peer companies over certain time periods, screening for companies which are fundamentally underperforming peers as expressed by operating margins which are below their own history or peers, and ranking stocks by sell side or buy side sentiment. Ideas that are being actively researched are what we call “work in process.” These names are reviewed regularly by portfolio managers and stocks are added or deleted to focus the team’s research efforts. Part of processing an idea includes preparing an Investment Case which documents the investment thesis. It consists of a brief company description, a discussion of the change(s), an assessment of the relative neglect, and valuation. It also includes an assessment of the risks relevant to the thesis and our determination of a fair price target at that point in time.

Buy Discipline Our investment process is team oriented and collaborative. There are typically multiple analysts/portfolio managers engaged in a review and discussion of new ideas and Investment Cases. A financial model in sufficient detail and relevant due diligence will also be prepared and reviewed as part of the evaluation process. If the risk/reward is deemed attractive by the portfolio managers in the context of their overall portfolio construction, a decision will be made by the portfolio managers to initiate a position in the stock. The portfolio managers will modulate the position size depending upon the relative attractiveness of the idea, the expected return and other risk considerations.

Sell Discipline CRM’s process is focused not only on building the Investment Case, but also on understanding how the case might deteriorate. The Firm’s sell discipline is ultimately dependent upon the written Investment Case for the stock. A position will be sold when one or more of the following occurs: an established price target is approaching or is attained, implying the stock has reached our estimation of fair valuation; a factor in our initial investment thesis has deteriorated causing us to reassess the potential for the company; or we identify a more promising investment opportunity. After a decision to sell is made, the investment is replaced by either a new idea or existing holdings which offer a greater risk/reward profile.

16 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter 16 Product Disclosure Important Disclosures

Fund Commentary & Contributors/Detractors Performance Disclosure It should not be assumed that investments made in the The Since Inception performance return for the indices represent the Investor future will be profitable or will equal the performance of Shares for the CRM Small Cap Value Fund and the Institutional Shares for the CRM the securities mentioned. Upon request, CRM will furnish Small/Mid Cap Value Fund and CRM Mid Cap Value Fund. Effective December 31, a list of all securities purchased, sold, or held in any of 2005, the CRM Small Cap Value Fund, CRM Small/Mid Cap Value Fund, and CRM the funds referred to in this newsletter during the twelve Mid Cap Value Fund received all of the assets and liabilities of the identically named month period preceding the date of the list of securities for corresponding series of WT Mutual Fund (the “Predecessor Fund”). The financial that fund included in this newsletter. The methodology for highlights for the periods prior to December 31, 2005 reflect the performance of the calculating the top contributors and detractors is based on Predecessor Fund. an absolute dollar basis over the specified time period (i.e. quarterly) within the Funds. The performance information includes a comparison to various benchmarks, which are rebalanced annually. The benchmarks used for each Fund are as follows: • Small Cap Value: Russell 2000 Value Index and the Russell 2000 Index. The Russell 2000 Value Index measures the performance of Fund Characteristics those companies in the Russell 2000 Index with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index is Information pertaining to Fund Characteristics includes an unmanaged, capitalization weighted index of 2000 small cap U.S. companies. It is not possible to invest directly in any index. weighted average market capitalization, median market • Small/Mid Cap Value: Russell 2500 Value Index and the Russell 2500 Index. The Russell 2500 Value Index is an unmanaged index that measures the performance of those companies in the Russell 2500 Index with lower price-to-book ratios and lower forecasted growth val- capitalization, and other preliminary numbers that have ues. The Russell 2500 Index is an unmanaged index that measures the performance of the 2,500 smallest companies in the Russell 3000 been derived from FactSet Research Systems. As these Index. It is not possible to invest directly in an index. numbers are preliminary, they are subject to change. • Mid Cap Value: Russell Midcap Value Index and the Russell Midcap Index. The Russell Midcap Value Index measures the performance of those companies in the Russell Midcap Index with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Theses figures refer to the funds’ portfolio and not to the Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents the performance of the fund itself. 1,000 largest companies in the U.S. equity market. It is not possible to invest directly in an index. • All Cap Value: Russell 3000 Value Index and the Russell 3000 Index. The Russell 3000 Index is composed of 3,000 large U.S. companies, as determined by market capitalization. This portfolio of securities represents approximately 98% of the investable U.S. equity mar- Top Ten Holdings ket. The Russell 3000 Index is comprised of stocks within the Russell 1000 and the Russell 2000 Indices. The Russell 3000 Value Index It should not be assumed that the Top Ten Holdings pre- measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. It is not possible to invest directly in an index. sented for each fund in this newsletter will, in the future, S&P 500 Index is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is be profitable or will equal any references to performance designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. in this commentary. Upon request, CRM will furnish a Basis point is a unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. list of all securities purchased, sold, or held in any of the funds referred to in this newsletter during the twelve P/E FY2 of a stock is calculated by dividing the current price by the projected earnings for the company’s fiscal year after next. month period preceding the date of the list of securities Price/Book Value Ratio is calculated by dividing the market price of its stock by the company’s per-share book value. for that fund included in this newsletter. Wtd Avg Mkt Cap (Weighted Average Market Cap) is weighted by the market capitalization of each stock in the index. Wtd Median Mkt Cap (Weighted Median Market Cap) is the weighted market capitalization midpoint in the index weighted. Sector Allocation Active Share is a measure of the percentage of the portfolio that differs from its benchmark on an average portfolio weightings basis. The Sector Allocation presented for each fund in this Free cash flow is a measure of a company’s profitability after all expenses and reinvestments. newsletter may not be representative of the funds’ current or future investments. The source of the information for all Sector Allocations is FactSet Research Systems, Russell Sectors.

17 Cramer Rosenthal McGlynn, Third Quarter 2018 Fund Newsletter Shares of CRM Funds are distributed by ALPS Distributors, Inc.

Please note that shares of a mutual fund may only be offered through a prospectus. Investing in non-U.S. securities involves special risks such as, greater social, economic, regulatory, and political uncertainties, and currency fluctuation.

Investors should carefully read a prospectus and consider the investment objectives, risks, charges and expenses carefully before investing. To request a copy of a prospectus for any CRM Mutual Fund product, which contains this and other important information, please call 800.276.2883 or visit www.crmfunds.com.

The Investment Adviser’s, Cramer Rosenthal McGlynn, LLC, office is located at 520 Madison Avenue, New York, NY 10022.

Please note that shares of a mutual fund may only be offered through a prospectus. CRM000890 1/16/2019