PineBridge Investments

United States

PineBridge US Mid Cap Growth Fund*

QUICK LOOK As of 09/02/2010
Ticker Symbol CUSIP Fund Number Inception Date Daily Nav Daily Changes
PBDRX 72302A606 1417 3/31/00 $ 7.56 $ 0.00

Fund Objective

To provide maximum capital appreciation, consistent with reasonable risk to principal.

We seek to achieve this objective by investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in stocks of US middle capitalization (“mid-cap”) issuers. A mid cap issuer is currently defined as an issuer that, at the time of purchase by the Fund, has a market capitalization of (1) between $1.0 billion and $12 billion; or (2) within the range of companies represented in the Russell Midcap® Growth Index (the “Mid Cap Index”).

Fund Description

The Fund provides a source of growth opportunities, with potentially less risk than smaller capitalization stocks. For years it has been our belief that mid cap stocks merely represent companies further along in their maturity curve, yet still early enough in their life cycles, to present rapid growth opportunities. This asset class offers some unique and positive characteristics such as:

  • Maturity as it relates to the management and execution of the business model
  • Growth potential not encumbered by size
  • Less than efficient stock market pricing largely due to a modest level of quality research
  • Reasonably good market liquidity for stock trading

In short, these stocks combine the growth qualities of small caps and the stability of large caps.

We look for growth catalysts by categorizing each candidate based on its stage of development and then use multiple screens to identify prospective portfolio companies.

To manage fluctuations in the value of the Portfolio's investments, we invest across numerous industry sectors with no industry representing more than 25% of the value of the Portfolio.

We conduct due diligence with each company's senior management, suppliers, competitors and customers in an attempt to understand its dynamics.

Finally, we select companies we feel have:

  • Strong growth in revenue
  • Earnings and cash flow
  • Predictable operating models
  • Seasoned management
  • Unique products or services.

Once selected, companies are continuously monitored and placed on a “suspect” or watch list if it they fail to meet a certain set of criteria.

The team adheres to this disciplined investment process in managing the Fund. The process ensures that the team evaluates companies on the criteria most relevant to their stage of development, stands behind their stock picks and eliminates the human bias in picking and holding stocks.

Investor Profile

The PineBridge US Mid Cap Growth Fund may be appropriate for investors who:

  • Are seeking long-term capital growth
  • Do not need current income
  • Are willing to hold an investment over a long period of time
  • Are able to tolerate fluctuations in the principal value of their investment
  • Understand and can bear the risks of investing in mid cap companies
Minimums, Fees & Expenses as of 3/31/2009
Class Minimum Investment Fund Expenses Total Annual
Operating Expenses**
Expense Ratio Cap
Management Fee Distribution Fee*
I $1,000,000 0.75% - 1.21% 1.20%
R $2,500 0.75% 0.35% 1.56% 1.55%
*Class R includes 12b-1 fee (no 12b-1 fee on Class I).
**The advisor has contractually agreed to waive fees and/or reimburse expenses through March 30, 2011.

* The US Mid Cap Growth Fund is closed to new investors.

Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

Mutual fund investing involves risk. Principal loss is possible. Investments in mid-cap companies tend to have limited liquidity and greater volatility than larger companies.

Return on Equity is a companies’ net income divided by its total shareholders’ equity.

Cash Flow is the excess of cash revenues over cash outlays in a give period of time.

For more information on our closed share class B or the Institutional share class, please call Shareholder Services at 1-800-426-9157.

 
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