(PUB) Investing 2016

5

May 20 16

Morningstar FundInvestor

Data through April 30, 2016 FINRA members: For internal or institutional use only. Conestoga Small Cap Investors

Ticker CCASX

Yield 0.0%

Total Assets $681 mil

Mstar Category Small Growth

Benchmark 1: Russell 2000 Growth TR USD Benchmark 2: S&P 500 TR USD Morningstar Analyst Rating 04-18-16 „

Investment Style Equity

Historical Profile Return Risk Rating Above Avg Below Avg QQQQ Above Avg

9 9 9 9 9 9 9 9

Growth of $10,000

20.0

Investment Values of Fund Investment Values of Benchmark 1

15.0

Morningstar Pillars Process

∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive

10.0

Performance

People Parent

Performance Quartile (within Category)

( ( & ( ( & ( & ) & ( 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 04-16 18.44 19.11 13.82 17.84 22.12 22.62 24.98 36.65 33.70 35.74 34.25 9.45 6.43 -27.38 29.09 23.99 4.55 11.00 49.26 -8.05 8.03 -4.17 -3.90 -0.62 11.16 -5.38 -5.10 7.46 -3.59 5.95 -13.65 9.41 -0.44 -6.34 0.93 9.62 2.62 8.93 2.44 -5.00 16.87 -21.74 6.65 -5.91 0.00 0.19 0.29 0.00 0.00 0.00 0.10 0.00 0.00 0.00 0.00 9.45 6.24 -27.67 29.09 23.99 4.55 10.90 49.26 -8.05 8.03 -4.17 0.00 0.03 0.05 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.11 0.49 0.00 0.00 0.00 0.51 0.10 0.63 0.00 0.67 0.00 1.35 1.31 1.30 1.29 1.24 1.27 1.22 1.21 1.24 1.30 . -0.26 -0.01 0.39 0.01 -0.26 -0.36 -0.50 -0.09 -0.64 -0.37 . 58 55 2 74 71 4 75 9 97 3 59

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 04-30-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

9.90 -0.40 0.57 0.84 11.00 13.93 2.25 15.43 11.00 49.26 -5.95 -1.62 -9.41 9.70 -8.05 5.10 3.22 -8.45 8.77 8.03

.

19 21

14 30

23 33

14 79

23

18

16

15

18

12

126

185

317

716

617

458

470

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 03-31-16 Total Stocks: 45 Share change since 02-29-16

-3.47

— — — —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

YTD Ret % % Assets

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

T Stamps.com Inc

Technology Technology Basic Mat

— 3.48 — 3.45 — 3.43 — 3.35 — 3.21 — 3.14 — 3.04 — 3.03 — 2.95 — 2.91 — 2.85 — 2.68 — 2.66 — 2.42 — 2.38 — 2.26 — 2.26 — 2.18 — 2.17 — 2.17 16.91 0.53 7.85 1.39 4.68 0.27 2.33 0.48 2.05 0.54 55.55 1.35 0.00 0.00 1.76 2.32 17.76 1.14 36.03 1.55 27.54 1.02 1.96 0.40 25.58 1.17 0.00 0.00 % of Stocks Rel Bmark 1

1 Yr 3 Yr 5 Yr

-0.38 8.80 7.93 6.93 10.51

3 Mo 6 Mo

5.32 -2.65 -1.73 -2.55 2.41 -2.98 -0.38 7.89 -1.58 8.80 0.30 -2.46 7.93 0.78 -3.08 6.93 0.79 0.02

80 10,532 27 9,745 9 9,962 26 12,878 18 14,649 15 19,536

T Bottomline Technologies I

+Avg QQQ

+Avg +Avg +Avg

T AAON Inc

Avg QQQQ Low QQQQ

1 Yr

T Cantel Medical Corp

Hlth Care

10 Yr Incept

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

T Omnicell Inc T Proto Labs Inc T Blackbaud Inc T Neogen Corp

Technology

Industrl

Technology Hlth Care Hlth Care Hlth Care Cnsmr Cyc Technology Technology Technology Technology Technology Finan Svcs Industrl Industrl Hlth Care

Other Measures

Standard Index

Best Fit Index

— — — — —

Alpha

-2.3 1.07

1.3

T Ligand Pharmaceuticals In T Mesa Laboratories Inc

Beta

1.01

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

R-Squared

53

87

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

8.47 7.65 6.69

9 8 4

0.30 0.27 0.22

8 9 7

T Dorman Products Inc

Standard Deviation

16.66

T Simpson Manufacturing Co T Vascular Solutions Inc T SPS Commerce Inc T Tyler Technologies Inc T ACI Worldwide Inc T Healthcare Services Group T FleetMatics Group PLC

Mean

8.80 0.58

Sharpe Ratio

Potential Capital Gain Exposure: 30% of assets

Morningstar's Take by Susan Wasserman 04-18-16 Conestoga Small Cap’s 0.8% loss over the past year through March 2016 may not impress at first glance, but that showing fared much better than the 11.8% loss of its small-cap growth benchmark--the Russell 2000 Growth Index. Plus, it is a welcomed turnaround after a rough 2014. The recent success builds upon the fund's legacy of strong returns and tempered volatility going back to its 2002 inception. The impressive long-term record comes from a tenured team that sticks to a proven process, earning the fund a Morningstar Analyst Rating of Silver. Management’s longer-term outlook and patient approach drive the fund’s success. Comanagers Joseph Monahan and Robert Mitchell, along with three analysts, scour the small-cap universe for stocks that they believe will appreciate at least 100% over a three- to five-year period. They pay particular attention to companies with strong earnings growth, high return on equity, low debt/ capitalization, and significant management ownership. The team goes beyond these fundamental metrics, seeking to understand a company’s strategy and management’s execution success. This measured

approach translates to a relatively concentrated portfolio of 45-50 stocks that has remained fairly steady, as the fund's annual turnover typically hovers around 20% but fell as low as 12% in 2015. While this approach has rewarded investors over the long run, the fund stumbled in 2014. Subpar stock picks in the heavily weighted technology sector damaged performance. Although the team trimmed shares across most technology picks throughout 2015, the fund maintains a sizable overweighting in the sector. That helped the fund trounce the benchmark in 2015 when the fund posted a 8.0% gain compared with the benchmark’s 1.4% loss. Since its October 2002 inception through March 2016, the fund's 10.6% annualized gain only edges the Russell 2000 Growth's 10.5% return, but it has produced those results with much less volatility. That showing also handily beats the typical small-growth peer.

T HealthStream Inc

T Westwood Holdings Group I

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

Market Cap % Giant 0.0 Large 0.0 Mid 8.9 Small 57.9 Micro 33.2 Avg $mil: 1,456

Value Blend Growth

Large Mid Small

Value Measures

Rel Category

Price/Earnings 33.79

1.46 1.37 2.28 1.86 0.71 1.34 1.27 1.25 0.26 1.36

Price/Book Price/Sales

3.85 3.60

Price/Cash Flow 19.90 Dividend Yield % 0.62

Growth Measures

% Rel Category

Long-Term Erngs 20.29

Book Value

10.24

Composition - Net

Sales

8.89 3.30

Cash 6.6 Stocks 93.4 Bonds 0.0 Other 0.0 Foreign 0.0 (% of Stock)

Address:

Conestoga Funds Radnor, PA 19087

Minimum Purchase: Min Auto Inv Plan:

$2500

Add: — IRA: $2500

Cash Flow

$500

Add: —

Historical Erngs 15.70

800-494-2755

Sales Fees:

No-load

Web Address:

www.conestogacapital.com

Management Fee:

0.90%

Profitability

%

Inception:

10-01-02

Actual Fees:

Mgt:0.90% Dist:0.25%

Return on Equity Return on Assets

12.73

Advisor:

Conestoga Capital Advisors, LLC

Expense Projections: Income Distribution:

3Yr:$435 5Yr:$781 10Yr:$1756

8.70

Subadvisor:

None

Annually

Net Margin

10.47

A

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©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past performance is no guarantee of future results.Access updated reports at www.morningstar.com . To order reprints, email reprints@morningstar.com