Croft Value Fund

CLVFX

Natural Gas as an Investment Opportunity

This presentation contains selected information regarding Croft-Leominster Inc., Croft Funds Corp, and the Croft Value Fund (CLVFX) and is subject to change at any time after the date hereof without notice. Accordingly, the information set forth herein should not be relied upon as current as of any date after the date hereof. In addition, the information contained in this presentation should not be considered to be a complete description of any matter discussed herein.

Performance quoted represents past performance which is no guarantee of future results. Current performance may be lower or higher that what is stated. Investment return and principal value will vary with market conditions so that an investor’s share, when redeemed, may be worth more or less than the original cost. For current to most recent month-end performance, please call us at 800-551-0990. The fund imposes a 2% redemption fee on proceeds redeemed or exchanged within 30 days of purchase. The performance illustrated does not include the effect of this redemption charge. If it did, performance would have been lower.

Please consider the investment objectives, risks and charges and expenses of the Fund before investing. Before investing, you should carefully read the Fund’s prospectus, which contains this and other information about the Fund. Call Croft Funds Corp. at 800-551-0990 for a prospectus or visit our Web site, www.croftfunds.com.

CROFT LEOMINSTER IS AN INVESTMENT ADVISOR REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE INVESTMENT ADVISORS ACT OF 1940.

MANY INDIVIDUAL SECURITIES MAY BE RISKIER THAN THE MARKET AND EXPERIENCE ABRUPT SHORT-TERM PRICE MOVEMENT AND MAY RESULT IN POSSIBLE LOSS OF MONEY ON YOUR INVESTMENT. THE FUND’S NET ASSET VALUE, YIELD AND TOTAL RETURN MAY BE AFFECTED BY SUCH MOVEMENTS. THE FUND IS A MANAGED PORTFOLIO AND PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE.

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Important Information

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KENT G. CROFTPresident & CIO, Croft-LeominsterCo-manager, Croft Value Fund

Kent G. Croft holds an A.B. degree (1985) from Dartmouth College. From 1985 through May 1988, Kent was employed as a manager in the equity department at Salomon Brothers, Inc., New York. From 1988 to 1989, he was Vice President, Real Estate Investments for Bryans Road Corp. In 1989, Kent founded Croft-Leominster, Inc. with L. Gordon Croft, his father.

G. RUSSELL CROFTVice president, Croft-Leominster Co-manager, Croft Value Fund

G. Russell Croft holds a B.A. degree (1996) from Washington and Lee University and obtained his M.B.A. (1998) from the University of London. Before coming to Croft-Leominster, Inc., Russell had experience working for Gabelli & Company in New York. Russell has been a portfolio manager since 2006.

Experienced, Consistent Portfolio Managers

Croft-Leominster Inc.Investment Adviser to the Croft Value Fund

FIRM CHARACTERISTICS

Focus− Built on generating stock ideas for potential long-term outperformance− Established to be an originator and repository of unique ideas− Research-based, value-oriented, and sometimes contrarian− Generalists operating without constraints

Experience− Firm founded in 1989

− Croft Value Fund (CLVFX) inception 5/4/95− More than 75 years of combined investment management experience− $950 million total firm AUM as of 2/22/12

− $340 million in CLVFX as of 2/22/12

Independence− Family owned and operated− No affiliation to any bank, broker, insurer

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Highlights: Croft Value Fund (CLVFX)

Multi-cap, value approach − Seek best ideas across all market caps and industries

− Median Market Cap: $12.3 billion − Weighted Average Market Cap: $46.2 billion

− Strive to buy stocks at “$0.60 on the dollar”

Classic stock-pickers with disciplined approach and consistent style

Focused on long-term outperformance vs. benchmark (S&P 500)− Outperformed S&P 500 on an annualized basis during 3-, 5-, 10- and 15-year periods as of 1/31/12

True long-term focus seeking to buy and hold for at least 3-5 years

Tax efficient: low turnover rate averaging 19.3% over the past 5 years as of 1/31/12

Long-tenured and experienced portfolio management team

Individual & firm assets invested in the fund alongside shareholders

Selling discipline: Constantly monitor holdings and assess alternative uses of cash

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Past performance is not indicative of future results, which may vary. * Source: Morningstar

Natural Gas as an Investment Opportunity

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"What we have today…is the great domestic blessing of cheap natural gas…It gives us a bridge, at least a 10-year bridge, maybe a 20-year bridge, in which we can produce much cleaner energy at a low cost. That's a unique blessing.“

John Rowe, CEO of Exelon Corp.

Overview

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• Immense domestic reserves of natural gas should create a shift in energy consumption in the U.S. and abroad.

• Depressed near-term natural gas prices will drive increased usage and allow for the build-out of more infrastructure.

• Longer term, multiple drivers will increase demand for U.S. natural gas:

• Increased usage in transportation from both fleet and consumer vehicles

• Shifts towards natural gas-fired power generation due to low costs and environmental factors

• Development of LNG export terminals to feed robust international demand

• Decreases reliance on foreign energy and is much cleaner than other fossil fuels (coal, oil).

Depressed Current Prices- Supply

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• New drilling technologies have driven a huge increase in the recoverable supply of domestic natural gas from shales.

• Total resources of roughly 2,200 Tcf which equals about 100 years of supply at current consumption.

• Weather issues

Depressed Current Prices- Demand

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• Natural Gas is transported primarily via pipeline meaning foreign demand is a small factor affecting U.S. prices.

• Currently, main U.S. natural gas end markets are power generation and industrial applications.• Approx. 31% of natural gas demand from power generation today vs. 19% ten years ago.

• Rebound in broader economy is necessary for increase in domestic demand in the near term.• Oil is easily transported via tanker and thus trades on a global marketplace.

• In the U.S., Natural Gas currently trades at roughly an 85% discount to Oil on a BTU basis (using $100/ barrel of oil and $2.50/mcf natural gas).

• The largest discount since natural gas markets began to be deregulated in the 1980s.

Source: www.theintrinsicvalue.com

Globalization of LNG Market

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• Robust emerging market growth and the Fukushima nuclear crisis have driven higher natural gas prices abroad.

• Asia has grown their natural gas consumption by roughly 7% annually over the past 5 years.

• There are only three active nuclear plants in Japan today vs. 44 at the start of 2011 and Germany

has announced that they will reduce nuclear exposure.

• Higher natural gas prices outside of the U.S. are driving investment in LNG export facilities.

• Average natural gas import prices for January 2012:•Japan- $16 •Europe- $11(Source: The World Bank Commodity Markets Review)

• Major energy players have announced LNG export terminal projects in the U.S. and Canada for shipment beginning between 2016-2019. These facilities would represent

approx. 18%-20% of current U.S. and Canadian capacity.

Natural Gas and its Future in Transportation

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• Significant private sector investment by large energy and transportation players could portend a bright future for U.S. natural gas demand.

• Cummins Inc. and Westport Innovations created a JV to produce natural gas engines.

• In September 2011, Shell signed a partnership with Westport to provide natural gas fueling stations at some of its major truck stops.

• In July 2011, Chesapeake Energy announced a $150 million investment in Clean Energy Fuels Corp. (CLNE) to fund the development of natural gas fueling stations at 150 truck stops.

• In August 2011, CLNE received a similar $150 million investment from a private consortium to build even more natural gas fueling stations.

• Leading heavy-duty truck manufacturer Navistar (NAV) announced a deal with CLNE in February 2012 to provide their customers with natural gas fueling contracts.

“For the longest time, for natural gas to work in the trucking business, it needed government support. While we will always take what we can get [in terms of government support], this alliance will stand on its own.” - Daniel Ustian, Navistar’s chairman, president & CEO

Breakdown of U.S. Natural Gas Usage

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•Penetration of natural gas into the transportation fuel market represents a large growth opportunity off of a low base.

Positive Political Attributes

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• Energy independence is preferred by politicians and constituents on both sides of the ideological spectrum.

• 98% of the natural gas consumed in the U.S. is sourced domestically or from Canada

• Increasing natural gas use in transportation could drive significant reductions in oil demand.

• Only 1% of vehicles in the U.S. are equipped to run on natural gas.

• Subsidies and/or tax breaks to grow the fueling infrastructure or lower the price discrepancy between natural gas and traditional counterparts could drive adoption.

• The shale gas industry has created roughly 600,000 new jobs with potential for 870,000 more in the next 4 years according to IHS Global Insights.

• Natural Gas is roughly 40% cleaner than coal

• At current depressed prices, it is also cheaper on a BTU basis

Recent Mergers, Acquisitions, and Asset Sales

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• Exxon Mobil paid $31 billion for natural gas giant XTO in 2009.• Also commissioned a new $15 billion liquefied natural gas project in Papau New Guinea to

feed Asian markets.

• Chevron purchased Atlas Energy for $4.3 billion to obtain natural gas resources in Pennsylvania’s Marcellus Shale in 2010.

• BHP Billiton acquired Petrohawk Energy Corp. and their 3.4 Tcf of natural gas for $12.1 billion in the summer of 2011.

• In January of 2012, a rash of deals were announced:• Sinopec purchased a 20% stake in shale acreage from Shell for roughly $2.5 billion• Japanese commodity trader Marubeni paid $1.3 billion for a 35% stake in Eagle Ford

acreage owned by Hunt Oil.• Total SA purchased a stake in Chesapeake Energy’s shale acreage in Ohio for $2.3 billion

Risks

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• Depressed natural gas prices that last longer and are more severe than expected.

• Worse than expected environmental effects of fracking and/or government regulations that reduce the total recoverable resources from shales.

-------------AVERAGE ANNUALIZED RETURN------------

PERFORMANCE YTD 1-YEAR 3-YEAR 5-YEAR 10-YEAR 15-YEAR

CLVFX 7.7% -3.0% 20.8% 1.9% 5.5% 6.4%

Peer Group 5.0% 1.5% 18.2% -0.3% 3.5% 5.2%

S&P 500 4.5% 4.2% 19.2% 0.3% 3.3% 5.3%

Morningstar Rank among Large Cap Blend peer group

Top 4%among

1876 funds

Top 88%among

1773 funds

Top 11%among

1578 funds

Top 10%among

1385 funds

Top 6%among

824 funds

Top 15%N/A

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Performance quoted represents past performance which is no guarantee of future results. Current performance may be lower or higher that what is stated. Investment return and principal value will vary with market conditions so that an investor’s share, when redeemed, may be worth more or less than the original cost. For current to most recent month-end performance, please call us at 800-551-0990. The fund imposes a 2% redemption fee on proceeds redeemed or exchanged within 30 days of purchase. The performance illustrated does not include the effect of this redemption charge. If it did, performance would have been lower. Source: Morningstar. The Morningstar Rankings represent a fund’s total-return rank relative to all funds that have the same Morningstar Category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees.

A Top Performer in its Peer GroupAs of 1/31/12

CroftFunds.com 800.551.0990

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Question & Answer Session