Effective April 30, 2025, the Mairs & Power Small Cap Fund’s primary benchmark will be the Russell 2000 Total Return (TR). Since the Fund’s inception in 2011, the primary benchmark has been the S&P Small Cap 600 TR.
Prior to implementing this change, Mairs & Power conducted industry research, monitored market capitalization, and followed the regulatory and compliance landscape. We believe that switching to the Russell 2000 offers a broader set of investment opportunities in the small cap space for the Fund and allows greater flexibility to retain names that would require Fund Management to sell securities under an amendment to the SEC Rule 35d-1 (the “Names Rule”) scheduled to take effect in June 2026. In addition, the Russell 2000 is an industry standard for small cap fund benchmarking and this change helps create consistency for the Fund managers and clients.
Even though the benchmark is changing, the Fund's investment philosophy and process will remain the same. Mairs & Power will continue seeking out companies with durable competitive advantages, purchasing names at favorable valuations, and investing for the long term.
- The Russell 2000 is a small-cap stock market index of the smallest 2,000 stocks in the Russell 3000 Index.