We look to purchase securities of high-quality issuers when they are trading at attractive prices with the expectation that they will be long-term investments.

Equities

Although our equity investment style incorporates elements from several disciplines, it is best labeled "growth at a reasonable price." When selecting equity securities we concentrate on companies that:

• Have growth prospects that exceed industry and market averages
• Appear to be undervalued relative to their growth prospects, the overall market and/or their respective industries
• Demonstrate unquestioned financial strength

We are a global all-cap/core equity manager. This means that our clients' equity portfolios contain large-cap, mid-cap and small-cap stocks. In addition, a typical equity portfolio will contain both domestic and international stocks.

Fixed Income

When selecting fixed-income securities we generally concentrate on sound issuers whose obligations are rated "BBB" or better by one of the independent rating agencies.

Normally, we restrict our purchases of debt securities to issues having final maturities that are ten years or fewer from the date of purchase. Our experience indicates that an average maturity of approximately seven years has offered an optimal combination of low risk and reasonable return in recent decades.

Diversification

Our clients' portfolios are widely diversified among securities and industries. Exposure to any single industry is generally limited to 20% and exposure to any single corporate issuer to 5% of a client's portfolio.

Sale of Securities

We purchase securities with the expectation that they will be long-term investments, but will sell any security when such a sale appears appropriate. Factors that may prompt us to sell a security include:

• Achievement of a price objective
• Deterioration in the trend of earnings estimates
• Deteriorating company or industry fundamentals
• Negative "surprises"
• Insider selling
• Violation of a 200-day moving average