Investment Principles

Middlefield Investment Principles

Our regimented approach to investment management has been established over more than four decades within the asset management industry. Our funds are distinguished from passive, rules-based or smart-beta strategies. Middlefield portfolios are actively managed, seeking to identify and capitalize on both contemporary and contrarian opportunities while able to defend against unforeseen risks.

We are prudent capital allocators across market sectors and securities. Considering our focus on quality companies that generate stable and growing free cash flows, we build and manage high conviction, low turnover portfolios which have demonstrated a track record of earning growing dividend streams which we pass through to our unitholders via predictable, tax efficient distributions. Our disciplined and income-oriented investment philosophy is anchored by the following investment principles, which continuously govern our decision-making process:

Business Philosophy

• Focus on doing what is right for our clients by operating with integrity, working collaboratively and maintaining our independence
• Attract and retain humble, hungry and high-caliber individuals that take ownership in their decisions and responsibilities
• Invest in our products alongside our clients; demonstrating an alignment of interest

Investment Approach

• Make high-conviction capital allocations to quality businesses with the goal of growing and preserving unitholder wealth over the long-term
• Target core companies within our areas of expertise but be flexible when considering opportunities – we will oftentimes need to be contrarian to generate superior risk-adjusted returns over the long-term
• Invest based on robust fundamental investment analysis which incorporates revenue drivers, profitability estimates, management quality, balance sheet, competitive analysis, stock and portfolio level dividend coverage among other investment metrics
• Maintain objective risk management practices and investment restrictions including minimum market capitalization criteria for portfolio companies as well as minimum and maximum portfolio issuer weights

We believe that successful execution of these principles will result in value creation, capital preservation and higher total returns for our unitholders.

Middlefield President & CEO,