Attachment 3

List of 13 Secondary Variables Used in the Acadia Model

The 13 secondary variables are used to either include or exclude securities from the ranking list (derived from one or more selected primary variables listed in Attachment 2).

Variables (1)

Examples of Possible Use for Value Investor
  • TMC/Sales

Exclude the top 10% with highest multiples
  • TMC/EBIT

Include the bottom 40% with lowest multiples
  • TMC/EBITDA

No constraint
  • TMC/Assets

No constraint
  • TMC/TIC

Exclude the top 20% with highest multiples
  • TMC/TICAD

No constraint
  • TMC/3-Year Average EBIT

Include the bottom 30% with lowest multiples
  • TMC/3-Year Average EBITDA

Include the bottom 30% with lowest multiples
  • Return on Investment

Exclude bottom 10% with lowest ratios
  • Return on Sales

Exclude bottom 10% with lowest ratios
  • Size

Exclude bottom 10% based on size (total market capitalization)
  • Sales Growth

Exclude bottom 15% based on latest 3-year sales growth
  • Beta

Exclude securities with a best > 1.5