sset Management

Asset allocation is the process of selecting a mix of asset classes and the efficient allocation of capital to those assets by matching rates of return to a specified and quantifiable tolerance for risk.

We have developed seven portfolio strategies that are used as asset allocation guidelines in designing a client's portfolio. Each model consists of a different "target" asset allocation in up to nine (9) different asset classes³, as well as being diversified into at least twelve (12) different sectors of the market in order to minimize sector and industry risk. By spreading money among a variety of investments as opposed to investing in just one creates a more prudent approach to asset management. Typical composition mix classifications:

ASSET ALLOCATION MODEL	Percentage of
ASSET ALLOCATION MODEL	EQUITIES	BONDS	CASH
Foreign Aggressive Growth	95% - 100%	0%	0% - 5%
Aggressive Growth	95% - 100%	0%	0% - 5%
Growth	75% - 85%	15% - 20%	0% - 8%
Balanced Growth	55% - 65%	30% - 40%	0% - 8%
Balanced Income	40% - 50%	45% - 55%	0% - 10%
Income	20% - 30%	60% - 70%	5% - 15%
Capital Preservation	5% - 15%	70% - 80%	10% - 20%

Such allocation guidelines are a representation of a typical account composition but should not be as absolute. Ultimately, the exact composition makeup and allocation of securities are determined by the client's investment parameters, which can compose a more detailed and/or complex structure.

³ The different asset classes are: U.S. Large-Cap Stocks; U.S. Mid-Cap Stocks; U.S. Small Cap Stocks; Non-U.S. Large Cap Stocks; Non-U.S. Emerging Market Stocks; U.S. Bonds; Non-U.S. Bonds; High Yield Bonds and Cash.

Asset Managed accounts are disciplined and focused to resist the temptation to react to short-term market fluctuations.