Organization
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Trust for Professional Managers (the “Trust”) was organized as a Delaware statutory trust under a Declaration
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of Trust dated May 29, 2001. The Trust is registered under the Investment Company Act of 1940, as amended
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(the “1940 Act”), as an open-end management investment company. The Snow Capital Small Cap Value Fund (the “Fund”)
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represents a distinct series with its own investment objectives and policies within the Trust. The investment objective of the
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Fund is long-term capital appreciation. The Trust may issue an unlimited number of shares of beneficial interest at $0.001 par
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value. The assets of the Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The
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Fund commenced operations on November 30, 2010.
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Significant Accounting Policies
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The following is a summary of significant accounting policies consistently followed by the Fund in the preparation
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of these schedules of investments. These policies are in conformity with generally accepted accounting principles in the
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United States of America (“GAAP”).
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Investment Valuation
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The Funds’ securities, including American Depositary Receipts (“ADRs”), which are traded on securities exchanges are valued
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at the last sale price on the exchange on which such securities are traded, as of the close of business on the day the securities
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are being valued or, lacking any reported sales, at the mean between the last available bid and asked price. Securities that are
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traded on more than one exchange are valued on the exchange determined by the Adviser to be the primary market. Securities
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listed in the Nasdaq Stock Market, Inc. (“NASDAQ”) will be valued using the NASDAQ Official Closing Price (“NOCP”).
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If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been
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no sale on such day, at the mean between the bid and asked prices. Over-the-counter (“OTC”) securities that are not listed
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on NASDAQ shall be valued at the most recent trade price. Short-term debt obligations with remaining maturities in excess of
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60 days are valued at current market prices, as discussed above. Short-term securities with 60 days or less remaining to
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maturity are, unless conditions indicate otherwise, amortized to maturity based on their cost to the Fund if acquired within
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60 days of maturity or, if already held by the Fund on the 60th day, based on the value determined on the 61st day. When
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market quotations are not readily available, any security or other asset is valued at its fair value as determined under
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procedures approved by the Trust’s Board of Trustees. These fair value procedures will also be used to price a security when
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corporate events, events in the securities market and/ or world events cause the Adviser to believe that a security’s last sale price
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may not reflect its actual market value at the close of the business day. The intended effect of using fair value pricing
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procedures is to ensure that the Fund is accurately priced.
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The Valuation Committee of the Trust shall meet to consider any valuations. This consideration includes reviewing
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various factors set forth in the pricing procedures adopted by the Board of Directors and other factors as warranted.
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In considering a fair value determination, factors that may be considered, among others include; the type and structure
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of the security; unsual events or circumstances relating to the security's issuer; general market conditions; prior day's
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valuation; fundamental analytical data; size of the holding; cost of the security on the date of purchase; trading activity
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and prices of similar securities or financial instruments.
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The Fund has adopted Statement of Financial Accounting Standard, “Fair Value Measurements and Disclosures”
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(“Fair Value Measurements”) and FASB Staff Position “Determining Fair Value When the Volume and Level of
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Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions that are Not Orderly”
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(“Determining Fair Value”). Determining Fair Value clarifies Fair Value Measurements and requires an entity to
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evaluate certain factors to determine whether there has been a significant decrease in volume and level of
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activity for the security such that recent transactions and quoted prices may not be determinative of fair value
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and further analysis and adjustment may be necessary to estimate fair value. Determining Fair Value also
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requires enhanced disclosure regarding the inputs and valuation techniques used to measure fair value in those
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instances as well as expanded disclosure of valuation levels for major security types. Fair Value Measurements
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requires the Fund to classify its securities based on valuation method. These inputs are summarized in the three
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broad levels listed below:
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