FIXED INCOME

Investment Objective- Produce steady stream of income without undue risk of principal through the active management of high quality bonds. The portfolio is invested in US Treasury and Agency securities, investment grade or better corporate bonds, and mortgage backed securities. This management includes an investment strategy that forecasts trends in economic activity, interest rates, and valuation of sectors and securities to minimize risk to principal while seeking a yield that is above that of the indexes.

GROWTH & INCOME

Investment Objective- Provide long term growth of capital and reasonable current income. Strategy focuses on companies with strong consistent earnings , established record of dividend payment, and capacity to grow both, and investment grade bonds to provide steady stream of current income. Stock selection is based on a bottom-up approach that follows long term valuation trends, including an average P/E ratio below that of the S&P 500, low volatility of past cash flow and earnings, and a stock price selling at a discount to its intrinsic value. Bond selection based on interest rate forecast and valuation among sectors. This portfolio is broadly diversified and seeks a yield above that of the S&P 500.

VALUE

Investment Objective- Achieve superior long term total return (capital appreciation and income) through a strategy that seeks to equal or exceed market returns with less risk. The strategy provides a hedge against fluctuating markets by investing in mostly large cap companies at attractive valuations while providing market returns in up markets. Selection is made from mid and large cap companies with sound balance sheets, lower than market P/E ratios with higher than market dividend yield, higher than market earnings growth, and a steady record of dividend and cash flow growth.

CAPITAL APPRECIATION

Investment Objective- Long term total return through principal appreciation. All assets are allocated among equity securities, with a greater focus on small cap and emerging market equities for enhanced return opportunity. Focus is on companies with a minimum market capitalization of $500 million (typically non S&P 500 small caps and international stocks), a 15% return on equity, minimum long term earnings growth of 15%, and a relative P/E of no more than 2X earnings per share. Investors MUST be able to tolerate a higher level of portfolio fluctuation over longer time periods.