CRM Funds / Small Cap Value Fund

SMALL CAP VALUE FUND

The CRM Small Cap Value Fund began in October 1995.

As of March 31, 2008
$601 million Mike Caputo & Kevin Chin
Ticker Inception Cusip Net Expense Ratio2 Gross Expense Ratio Current Assets Minimum Investment
CRISX 1/27/1998 92934R785 0.86% 0.86% $425 million $1,000,000
CRMSX 10/1/1995 92934R793 1.11% 1.11% $176 million $2,500

The Small Cap Value Fund, under normal circumstances, invests at least 80% of its assets in a diversified portfolio of equity and equity related securities of companies with market capitalizations at the time of initial purchase similar to those in the Russell 2000 Value Index (“small cap companies”) that are publicly traded on a U.S. securities market.

The market capitalization range of the Russell 2000 Value Index changes constantly, and as a result, the capitalization of small cap companies in which the Small Cap Value Fund will invest will also change. As of September 30, 2006, the market capitalization range of the Russell 2000 Value Index was approximately $236 million to $4 billion.

Supported by an experienced team of investment professionals, the portfolio managers make judgments about the relative attractiveness of various securities in selecting stocks for the Small Cap Value Mutual Fund. This Fund typically will be invested in 55 to 65 stocks. Although the Fund is built from the bottom up, stock-specific risks, sector weightings and risk/reward characteristics are all taken into account in the portfolio construction process.

Top Ten Equity Holdings (as of 12/31/07)

Barnes Group Inc. 3.6%
Greif, Inc. 3.4%
Compass Minerals International 3.2%
Tween Brands Inc. 3.1%
Investors Bancorp Inc 3.1%
Interline Brands, Inc 3.0%
Range Resources Corp. 2.9%
Regal Beloit Corp 2.9%
Insight Enterprises Inc 2.8%
G & K Services Inc 2.6%
TOTAL 30.6%

Most Recent Fund Distribution - 2007

As a shareholder of a Fund, you are entitled to dividends and other distributions arising from net investment income and net realized gains, if any, earned on the investments held by the Funds. Dividends and distributions, if any, are declared and paid annually to you. Each Fund expects to distribute any net realized gains once a year.

Distributions are payable to the shareholders of record at the time the distributions are declared (including holders of shares being redeemed, but excluding holders of shares being purchased). All distributions are reinvested in additional Fund shares unless you have elected to receive the distributions in cash.

  • Date of Record: 12/14/2007
  • Ex-Date: 12/17/2007
  • Payment Date: 12/18/2007
Name Short Term Long Term Ordinary Income Total
CRM Small Cap Value Fund
Institutional Class $0.89171 $2.98646 $0.12477 $4.00294
Investor Class $0.89171 $2.98646 $0.05312 $3.93129

View historical distribution information.

Performance (as of 03/31/08)

Annual Returns

Year Small Cap
Value		 Russell
2000V		 Russell
2000
2007 -3.12 -9.78 -1.57
2006 14.75 23.48 18.37
2005 10.64 4.71 4.55
2004 18.11 22.25 18.33
2003 48.68 46.03 47.25
2002 -17.60 -11.43 -20.48
2001 26.48 14.02 2.49
2000 18.37 22.83 -3.02

Annual Returns

Year Small Cap
Value		 Russell
2000V		 Russell
2000
2007 -3.39 -9.78 -1.57
2006 14.46 23.48 18.37
2005 10.39 4.71 4.55
2004 17.83 22.25 18.33
2003 48.33 46.03 47.25
2002 -17.83 -11.43 -20.48
2001 26.34 14.02 2.49
2000 18.01 22.83 -3.02

Annualized Returns

Year Small Cap
Value		 Russell
2000V		 Russell
2000
Q1'08 -3.82 -6.53 -9.90
YTD -3.82 -6.53 -9.90
1 Yr -9.16 -16.88 -13.00
3 Yr 6.85 4.33 5.06
5 Yr 17.04 15.45 14.90
ICD 9.68 8.51 6.22

Q1'08 CRM: -3.82
Russell<br>2000V: -6.53
Russell<br>2000: -9.90
YTD CRM: -3.82
Russell<br>2000V: -6.53
Russell<br>2000: -9.90
1 Yr CRM: -9.16
Russell<br>2000V: -16.88
Russell<br>2000: -13.00
3 Yr CRM: 6.85
Russell<br>2000V: 4.33
Russell<br>2000: 5.06
5 Yr CRM: 17.04
Russell<br>2000V: 15.45
Russell<br>2000: 14.90
ICD CRM: 9.68
Russell<br>2000V: 8.51
Russell<br>2000: 6.22

  • Small Cap
    Value

  • Russell
    2000V

  • Russell
    2000

Annualized Returns

Year Small Cap
Value		 Russell
2000V		 Russell
2000
Q1'08 -3.87 -6.53 -9.90
YTD -3.87 -6.53 -9.90
1 Yr -9.42 -16.88 -13.00
3 Yr 6.58 4.33 5.06
5 Yr 16.75 15.45 14.90
ICD 12.67 10.95 7.95

Q1'08 CRM: -3.87
Russell<br>2000V: -6.53
Russell<br>2000: -9.90
YTD CRM: -3.87
Russell<br>2000V: -6.53
Russell<br>2000: -9.90
1 Yr CRM: -9.42
Russell<br>2000V: -16.88
Russell<br>2000: -13.00
3 Yr CRM: 6.58
Russell<br>2000V: 4.33
Russell<br>2000: 5.06
5 Yr CRM: 16.75
Russell<br>2000V: 15.45
Russell<br>2000: 14.90
ICD CRM: 12.67
Russell<br>2000V: 10.95
Russell<br>2000: 7.95

  • Small Cap
    Value

  • Russell
    2000V

  • Russell
    2000

The information on the Funds’ performance represent past performance, 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 redeemed, may be worth more of less than their original cost. The Funds’ current performance may be lower or higher than the performance above. For most recent month-end performance, please click here.

You should consider the investment objectives, risks, charges and expenses of the Funds before investing. You may obtain the prospectus here or by calling 800.276.2883. The Funds are subject to risks, which are described in the prospectus. In particular, when compared to mutual funds that focus on larger capitalization companies, shares of the Funds may be more volatile because of the focus on smaller capitalization companies, which may have more limited product lines and fewer capital resources. The Funds’ value investing strategy also involves risks. Value stocks can perform differently from the market as a whole and can be undervalued by the market for long periods of time. You should read the prospectus carefully before investing.

1 Formerly, CRM Mid/Large Cap Value Fund. The Fund name change was effective October 26, 2007. The Fund has not changed its investment strategy.

2 The net expense ratio for the CRM Small Cap Value Fund, CRM Small/Mid Cap Value Fund, CRM Mid Cap Value Fund, CRM Large Cap Value Fund and CRM All Cap Value Fund is the ratio listed in the CRM Funds Semi-Annual Report, for the six months ended December 31, 2007. This figure will fluctuate over time. CRM has a contractual obligation to waive fees or assume expenses through November 1, 2010 to the extent necessary so that the total annual expenses do not exceed the following ratios: Institutional Shares, 1.20%; Investor Shares, 1.50%; Advisor Shares, 1.75%.

The net expense ratio for the CRM 130/30 Value Fund is the ratio listed in the Prospectus dated December 21, 2007. This figure will fluctuate over time. CRM has a contractual obligation to waive fees or assume expenses through November 1, 2010 to the extent necessary so that the total annual expenses do not exceed the following ratios: Institutional Shares, 1.75%; Investor Shares, 2.00%.