Fund-of-Mutual Funds (FOMF) Portfolio

The FOMF portfolio is designed to expose clients’ assets to a range of capitalization sizes (large-, mid-, and small-cap) and distinct, actively managed styles (value and growth) in both domestic and international markets. The concept behind this approach is to take advantage of an optimal mix of capitalization ranges and investment styles to influence total return over the long term. The fundamental asset allocation of the FOMF portfolio stands at 40%-40%-20% across large-, mid-, and small-cap securities and 50%-50% between value and growth and approximately 10% international exposure. The FOMF portfolio follows an active investment discipline of reallocating assets of the portfolio back to the predetermined target allocation.

Growth at a Reasonable Price (GARP) Portfolio

The GARP portfolio focuses on investing in the common stock of financially strong companies with unique products and services. We look for companies that are growing revenues and earnings faster than the overall market, while at the same time the company’s stock prices are trading at a reasonable price. We pay close attention to the overall portfolio and individual security valuations as measured by price to earnings, price to cash flow and price to sales ratios.

The GARP portfolio is based upon our “bottom up” security selection investment strategy. The portfolio is composed by companies that we expect to hold over time to realize their intrinsic value. We believe that companies growing revenue and earnings faster than the overall market will have long-term superior price performance. The GARP portfolio is designed to achieve excess total return with controlled risk.

International 60/40 Portfolio

The objective of the International 60/40 portfolio is to establish a diversified allocation of international and domestic equities and fixed income mutual funds to optimize the risk/reward profile of the portfolios. By including this portfolio as part of an overall strategy, investors will have exposure to foreign economies that often grow at varying rates at varying time periods.

The overall asset allocation for this portfolio is 20% in domestic equities securities, 60% in international funds, and 20% in domestic and international income securities. The domestic equity allocation is to the real estate sector and convertible bonds. The international market allocation integrates the emerging European and Asian markets. The international equity markets provide opportunities to invest in an international economy and market which typically complement the US stock market. Finally, the fixed income securities represent foreign and domestic high-yield issues which tend to boast modest volatility levels with long-term returns.

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