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2007 01 04 Handouts From Bogdahn Consulting For Regular 300
January 4, 2007 HANDOUTS TO THE BOARD OF TRUSTEE MEMBERS FROM BOGDAHN CONSULTING, LLC. FOR AGENDA ITEM "300". BOGDAHN CONSULTING, LLC. simplifying your investment decisions Core Fired Income Search Process As of 09/30/06 there were 1,234 investment products from 412 investment firms in the Domestic Fixed database in M-Search. We used the following criteria to narrow the number of products to a more manageable number. Asset Class Domestic Fixed 412 .. 1234 Product Benchmark Lehman Aggregate Bond, Lehman Gov/Credit Bond 238 382 5Yr. Down-Market Capture Ratio (rel. to LBAB) <= 101.000 170 258 3Yr. Down-Market Capture Ratio (rel. to LBAB) <= 103.000 170 256 5Yr. Returns >_ -99.000 170 256 5Yr. R-Squared >= 80.000 158 225 Quality Less than BBB; <= 1.000 124 150 5Yr. R-Squared <= 99.700 120 142 5Yr. Information Ratio >= 0.250 71 89 Total Firm Assets Under Management ($ Millions) >= 350.000 68 82 Minimum Account Size -Tax Exempt ($ Thousands) <= 10,000 38 46 The following seven investment management firms are presented in the search report: Agincourt Capital Management MBIA Asset Management* Bradford & Marzec* Pacific Income Advisors* Dwight Asset Management Sawgrass Asset Management Galliard Capital Management * These firms were added to the shortlist even though each firm did not "pass" all of the screens listed above. Agincourt and Galliard did not respond to the RFP; however, they passed all of criteria listed in the table above. Bogdahn Consulting, LLC. "simplifying your investment decisions" Summary of Quantitative Analysis: Higher score preferred Below, we evaluate each strategy on a rolling three-year basis using the following five performance measures: Information ratio (IR), Alpha, up-market capture ratio, down-market capture ratio, and Sortino ratio. For each rolling three-year period, we calculated a "score" by equally weighting each performance measure. Since the longest common period for all of the investment strategies was 10/01/2000 to 09/30/06, the overall score is an average of the 17 rolling three-year periods. Notes: - Information ratio is the manager's excess return above index divided by the manager's tracking error (standard deviation of the excess returns). Since tracking error is a measure of active risk, this ratio measures how "efficient" the manager was for the amount of active risk taken. Sortino ratio is the manager's excess return above a minimum acceptable return (MAR) divided by the deviations below the MAR. The calculations in the tables below are based on a MAR equal to zero (0). Downside Deviation measures the deviations below a MAR. The calculations in the tables below are based on a MAR equal to zero (0). This statistic x~as not Amorporalecl iii the score calcula~iais. - RAI =return above index. This statistic was trot incorporated in the score calce~latioiis Agincourt Capital Manag 10/1999 - 09/2006 ement, LL 0.33 C: Core Fixed Income .. . - . • . ~- 0.66 102.97 81.17 33.04 0.20 0.34 11.17 10/1999 - 09/2002 0.15 0.14 99.71 -197.10 197.65 0.05 0.11 98.95 01 /2000 - 12/2002 04/2000 - 03/2003 ~ 0.01 ; __m__...----+ mm 0.26 0.14 --.______._. 0.43 101.05 103.13 - ______ ~- 667.47 455.29; 0.01 0.02 _ 0.11 0.31 153.73 111.82 07/2000 - 06/2003 0.44 0.67 104.77 - ~ 8,432.26' 0.001 0.48 1,707.63 10/2000 - 09/2003 0.48 0.70 104.91 -6.93 226.22 0.04 0.50 67.85 01/2001 - 12/2003 __. _------_.___..___._.~_._._..__ ..._.. 04/2001 - 03/2004 0.53 __._.___..._..___ _ _ 0.46 1.05 _..._.____W-...__.~_ 0.91 107.85 _.__.________. 106.69 -6.93 .. ,_._ ._...........____... -6.93 116.88 _...._. _ V._____..._ 256.32 0.07' ....._._._..._.._......___.. 0.03 0.65 _._~...._..._.__...~ 0.56 46.65 V. __..___.. V..___ 74.26 07/2001 -06/2004 0.36 E 0.79 105.89 93.90 14.53, 0.47 0.48 5.53 10/2001 - 09/2004 0.33 0.65 104.77 93.90 8.601 0.73 0.38 4.09 01 /2002 - 12/2004 0.33 0.66. 104.63 93.90 13.77 ~ 0.48 0.38 5.10 04/2002 - 03/2005 07/2002 - 06/2005 0.45 0.48 0.85 2.03 105.68 108.53 93.12 93.12 8.56 11.85 0.76 0.54 0.47 E 0.65 4.48 5.95 10/2002 - 09/2005 0.51 2.05 108.29 _ 90.29 _ 5.99 ~J~w 0.75 ! 0.56 _ 5.31 01/2003 - 12/2005 _ ~ _____ 0.42 _ 2.00 106.68 90.29 5.62 0.72 0.45 4.89 04/2003 - 03/2006 0.40 1.94 105.67 88.93 4.41 ' 0.76 0.41 4.70 07/2003 - 06/2006 ~ 0.29 2.08 103.63 88.66 2.09 1.13 0.30 3.89 10/2003 - 09/2006 0.29 2.08 103.57 91.81 4.69 0.78 0.29 3.76 Avg. of 17 rolling periods 0.36 1.13 105.03 41.18 613.66 0.43 0.42 135.80 Bogdahn Consulting, LLC. "simplifying your investment decisions" Bradford 8 Marzec: Core 10/1999 - 09/2006 Fixed Income .. ~ ~ •. ~- 0.38 0.22 100.94 77.61 35.30 0.18 0.22 11.85 10/1999 - 09/2002 -0.57 -0.83 89.61 16.43 178.83 0.05 -0.95 50.12 01 /2000 - 12/2002 04/2000 - 03/2003 -0.38 -0.20 -0.61 , -0.44 92.45 93.99 - - 154.89 ~ 140.11 0.06 Y 0.07 -0.76 -0.59 49.27 46.69 07/2000 - 06/2003 -0.08 -0.30 95.85 - 78.80 0.12 -0.42 34.85 10/2000 - 09/2003 0.22 -0.15 96.23 -162.84 318.08 0.03 -0.20 115.44 01/2001 - 12/2003 0.39 -0.20 94.92 ~ -162.84 50.20 0.15 -0.25 61.63 04/2001 - 03/2004 0.56 -0.05 97.58 -162.84 61.981 0.12 -0.04 64.58 07/2001 - 06/2004 0.90 0.23 100.98 75.12 13.44 0.50 0.30 8.09 10/2001 - 09/2004 a 0.90 0.19 100.43 75.12 ' 9.97. 0.61 ~ 0.26 7.27 01 /2002 - 12/2004 1.42 0.43 104.90 75.12 _ 22.62 0.30 0.58 10.85 04/2002 - 03/2005 ___~._ V._._.__..___ _.___.._.. _ ._........_.._.__._~....... 07/2002 - 06/2005 1.49 ._.._._.._............_.._..__ 1.56 0.53 ............._.._..._...._..__._. 0.92 105.68 ~..~...__...---...___._.._ 110.35 72.90 _.__...._.._.._._....__.._ 72.90 9.92E ~_..____.__._._ 13.28 0.68 .....__..._._.._............_. 0.51 0.69 ~...___~___._._. 0.99 8.94 ___.____W_____ 10.64 10/2002 - 09/2005 . ... . . 1.32 2.16 120.58 _ 79.01 9.30E . . . { 0.57 , 1.34 10.87 ._ .,_. ,, - 01 /2003 - 12/2005 1.12 1.88 117.68 79.01 . r. r ~. 7.92 _- 0.60 1.13 9.92 04/2003 - 03/2006 0.92 1.84 113.51 77.60 5.71 0.67 0.93 8.88 07/2003 - 06/2006 0.74 ` _ _._. _. _. _ _ 1.49 __. _..._ ._.__..___.~. 112.58 _. ._ _ 79.28 ~__.___ . _ 3.30 _ . 0.85 0.76 7.77 _______._. _ ~. _______,___.._ _ _ _. 10/2003 - 09/2006 ._.. .. . . .. _ 0.66 . 1.30 ... 109.79 ~. . 87.25 .. .._ .._._ _r_._ 5.97 _._.._ 0.68 _ __._._. _._..~. 0.66 _T_T _ _.. 6.09 Avg. of 17 rolling periods 0.65 0.49 103.36 17.72 63.78 0.39 0.26 30.11 Dwight Asset Manageme 10/1999 - 09!2006 nt: Core Fixed Income ~. . - . ~- 0.90 1.12 108.58 47.77 40.02 0.18 0.96 20.57 10/1999 - 09/2002 0.15 0.54 104.31 -147.83 17,077.40 0.00 0.52 3,466.05 01/2000 - 12/2002 -0.22 0.42 104.00 - 413.69 0.03 0.40 103.58 04/2000 - 03/2003 0.23 0.75 108.11 - 198.35 0.05 0.80 61.49 07/2000 - 06/2003 0.37 0.95 111.06 - 3,798.85 0.00, 1.12 782.25 10/2000 - 09/2003 0.83 1.08 111.60 -381.11 264.58' 0.04 1.29 151.84 01/2001 - 12/2003 _.~_ ..._.___ ___.._._._._.___........ 04/2001 - 03/2004 1.02 ..___...__.~...__..__ 1.10E 1.06 __._~. __ _.._.._.__ 1.16 113.19 _..~..........._.~...e.........~..- 114.74 -381.11 ~_..~.__._.___. -381.11 120.55, _.. ~.._~...._.._. _ 363.83; 0.07 ~. ~~__.._._.__ _. 0.02 1.25 ___._._ _._ __ 1.35 123.39 ____._.._..._._. W 172.39 07/2001 - 06/2004 1.42 1.42 116.86 65.66 32.67 0.24 1.53 17.34 10/2001 - 09/2004 _ ~ 1.32 1.18 112.80 65.66 13.45 0.53 1.18 12.62 01 /2002 - 12/2004 1.42 1.21 112.63 65.66 21.50 0.34 1.21 14.22 04/2002 - 03/2005 1.57 1.35 112.54 58.27 14.12 0.52; 1.33 14.26 07/2002 - 06/2005 1.56 1.89 115.52 58.27 18.44 0.39 1.50 15.83 10/2002 - 09/2005 1.60 1.99 118.23 52.46E 10.40 _ 0.53' 1.57 15.95 01/2003 - 12/2005 ~1.59 ~ 2.08 ~ 120.11 52.46 11.66 0.45 1.60 16.60 04/2003 - 03/2006 1.36 1 1.99 115.08 53.46 6.73 0.64 ~ 1.37 14.34 07/2003 - 06/2006 1.01 1.87 109.19 53.11 3.74 0.83 1.05 12.54 10/2003 - 09/2006 0.82 _ 1.57 106.57 67.49 7.93 0.53 0.81 9.88 Avg. of 17 rolling periods 1.01 ~ 1.32 112.15 -41.10 1,316.35 0.31 1.17 294.39 Bogdahn Consulring, LLC. "simplifying your investment decisions" Galliard Capital Management: Broa 10/1999 - 0912006 0.54 d Market Core .. . • . • . ~• 1.09 107.14 72.24 29.58 0.23 0.69 13.22 10/1999 - 09/2002 __._ _ _._..~.. ~.__._..__ _ V _......_......__._._....... 01 /2000 - 12/2002 0.03 .____ _..._._~ .. _._. -0.22 0.57 .._._._._.__..._._.____.. 0.47 103.19 __._._..._.._..__.___._........ 102.98 -32.85 ...__.._.._......__._._....._ - 85.36, __..._.._.._._.........._.___..~ 557.43' 0.12, ...._......______.._._... ~ 0.02 0.36 _~...._.______ 0.30 44.40 132.13 04/2000 - 03/2003 -0.13 ~~ 0.58 103.94 _ - 96.42] 0.11 0.39 40.16 07/2000 - 06/2003 0.17 0.95' 108.41 - 452.33' 0.02 0.85 112.37 10/2000 - 09/2003 0.25 0.92 108.49 0.00 213.66 0.05 0.81 64.66 01 /2001 - 12/2003 04/2001 - 03/2004 0.30 ~ 0.45 0.81 1.10 108.22 _ 111.33 0.00 0.00 8-4.~08- 107.661 ~-- 0.10 0.08 0.68 ~ 0.90 __ 38.68 ~ 44.11 07/2001 - 06/2004 0.72 1.22 111.76 86.13 20.01 0.37 0.97 9.52 10/2001 - 09/2004 _ 0.67 ~ 1.04 110.25 86.13 10.56 _ 0.63 0.82 7.28 01/2002 - 12/2004 0.76 1.14 110.55 86.13 22.05 0.32 0.87 9.67 04/2002 - 03/2005 1.12 1.45 111.26 71.12 17.74 0.40 1.10 12.09 07/2002 - 06/2005 1.08 1.35 110.31 71.12 15.24 0.45, 1.01 11.37 10/2002 - 09/2005 0.96' 1.62 115.19 76.79 ` 9.77 0.52' 1.09 10.15 01/2003 - 12/2005 0.95 1.58 115.86 76.79 ; 6.66. 0.70, 1.07 9.65 04/2003 - 03/2006 0.90' 1.43 114.80 78.52 ] 4.08 0.95E 0.97 8.54 07/2003 - 06/2006 0.64 1.72 107.51 75.10 2.99 0.91 0.65 7.55 10/2003 - 09/2006 Avg. of 17 rolling periods 0.65 0.55 1.76 1.16 106.94 109.47 77.61 ~ 44.27 E _ _ 4.97 _ 100.65 _0.81~1' ~ 0.391 - 0.67 .____ 0.79 7.34 33.51 MBIA Asset Management: Core Fixe d Income ~. ~ • . - ~- 10/1999 - 09/2006 0.53 0.29 100.20 62.63 42.03 0.16 0.28 16.08 10/1999 - 09/2002 0.41 -0.18 95.91 -320.291 159.54E 0.06 -0.20 115.19 01/2000 - 12/2002 0.57 -0.05 99.44 588.39' 0.02 -0.06 137.67 04/2000 - 03/2003 _____ 0.87 0.13 101.72 - 306.25 0.03 ~ ~ ~ ~~~ 0.17 ~ ~~ 81.79 07/2000 - 06/2003 1.00 0.21 102.75 _ - 466.29 0- ®- ^ 2 _ ~ 0.28 114.05 10/2000 - 09/2003 1.15 0.29 101.80 -339.54 458.44, 0.02, 0.39 180.24 01 /2001 - 12/2003 1.20 0.44 104.57 -339.54' 97.88 ~ 0.08 ~ 0.57 108.73 04/2001 - 03/2004 1.09 0.30 102.19 -339.54 613.46 0.01 0.39 211.32 07/2001 - 06/2004 0.75 0.26 101.36 73.78; 23.99 0.28E 0.34 10.52 10/2001 - 09/2004 0.73 0.22 100.72 73.78 13.06 0.47 0.29 8.19 01 /2002 - 12/2004 0.44E 0.05 ~ 97.49 73.78 10.88 ~ 0.58; 0.07 7.02 04/2002 - 03/2005 0.81 0.33 101.59 77.10 10.46 0.61 0.36 7.22 07/2002 - 06/2005 ~~ 0.86 0.82 105.74 77.10 11. ~ 0.56 0.64 8.37 10/2002 - 09/2005 0.78 0.98 108.40 78.24 8.34 0.56 0.72 8.05 01 /2003 - 12/2005 0.51 0.80 103.13 78.24E 6.05 E 0.67 E 0.44 6.45 04/2003 - 03/2006 0.56 0.95 103.23 75.02 4.33 0.80 0.52 6.81 07/2003 - 06/2006 __. _._ __.._...._._._._~. 0.38 ...... _ ~.___.. 0.80 __~._. _ Y _.-.----._. 99.69 ~._...._....._.._ _____~_ 72.98 _ V. ~_..._. ~__~ 2.37 .__~___.e_..._.__ ~ , 1.04 ._..._..._ V ._._._ ; 0.41 __._._._ ~ . 6.05 10/2003 - 09/2006 0.17 ' 0.30 98.40 86.55 4.84 ~ 0.72 0.13 3.43 lli i d 2 0 39 101 65 67 33 163 8^~ -m~ 0 38 32 0 60 06 Avg. of 17 ro ng per o s 0.7 . . - . . . . . Bogdahn Consulting, LLC. "simplifying your investment decisions" Pacific Income Advisors: 10/1999 - 09/2006 Moderate 0.53 Duration .. . - . • . ~- 0.00 96.88 66.98 41.80 0.15 0.02 14.45 10/1999 - 09/2002 0.97 -0.22 97.40 65.70 1,124.31 0.01 ~ -0.23 231.35 01/2000 - 12/2002 ~ _ 1.41 -0.26 97.15 - 2,807.99 0.00 -0.29 581.26 04/2000 - 03/2003 1.41 -0.28 96.89 - 353,347.63 0.00 -0.30 70,689.13 07/2000-06/2003 1.93 -0.14 98.72 - 6,476.33 0.00 -0.13 1,315.37 10/2000 - 09/2003 1.68 -0.09 97.86 -131.66 951.74 0.01 -0.07 236.57 01/2001 - 12/2003 1.62 0.07 99.89 -131.66 509.95 0.01 _ 0.11 148.64 04/2001 -03/2004 1.54 -0.11 97.15 -131.66 1,121.36 0.01 -0.09 270.32 07/2001 - 06/2004 0.96 -0.14 94.81 73.48 33.77 0.19 -0.13 11.18 10/2001 - 09/2004 0.97 -0.07 95.59 73.48 12.84 0.45 -0.05 7.17 01/2002 - 12/2004 0.71 -0.34 91.90 73.48 17.39 0.34 -0.32 7.24 04/2002 - 03/2005 0.52 -0.43 89.10 66.84 10.36 0.54 -0.39 6.54 07/2002 - 06/2005 0.54 -0.29 91.48 66.84 11.40 0.49 -0.21 7.26 10/2002 - 09/2005 0.48 0.18 94.07 66.39 7.52 0.55 0.14 7.17 01 /2003 - 12/2005 0.49 0.33 95.65 66.39 6.93 0.56 0.23 7.40 04/2003 - 03/2006 0.34 0.32 94.17 68.52 4.58 0.69 0.23 6.18 07/2003 - 06/2006 0.17 0.32 91.88 67.05 2.76 0.83 0.23 5.62 10/2003 - 09/2006 0.19 0.14 93.85 73.64 5.99 0.58 0.11 5.31 Avg. of 17 rolling periods 0.94 -0.06 95.15 21.58 21,556.05 0.31 -0.07 4,326.10 SawgrassAsset Management: Core 10/1999 - 09/2006 0.23 Fixed Income .. ~ - ~ • . ~- 0.34 98.49 64.19 32.26 0.20 0.15 13.43 10/1999 - 09/2002 0.01 ~ 0.55 101.52 -131.40 238.91 0.04 0.25 94.48 01/2000 - 12/2002 _ 0.39 0.19 100.79 - 1,111.88 0.01 0.08 242.49 04/2000 - 03/2003 -0.36 0.26 101.09 - 401.30 0.03 0.11 100.46 07/2000 - 06/2003 -0.44 0.19 100.79 - 1,267.82 0.01 0.08 273.67 10/2000 - 09/2003 -0.20 0.33 100.84 -41.58 433.53 0.02 0.15 115.22 01 /2001 - 12/2003 -0.22 0.30 100.78 -41.58 57.70 0.13 0.13 40.03 04/2001 - 03/2004 -0.16 0.45 101.47 Wv V -41.58 ____ 67.18 0.11 0.18 42.10 07/2001 - 06/2004 W ~ 0.19 0.69 101.65 80.36 48.26 0.14 _ 0.30 14.09 10/2001 - 09/2004 0.13 0.25 98.92 80.36 9.46 0.63 0.11 5.68 01/2002 - 12/2004 0.09 0.15 98.33 80.36 15.39 0.41 0.07 6.72 04/2002 - 03/2005 0.30 0.42 98.56 72.34 10.99 0.56 0.20 7.59 07/2002 - 06/2005 0.25 0.13 96.41 72.34 12.82 0.46 0.06 7.45 10/2002 - 09/2005 0.16 -0.12 93.39 76.99 7.41 0.53 -0.04 4.77 01 /2003 - 12/2005 0.22 0.15 95.13 76.99 5.49, 0.67 0.07 4.80 04/2003 - 03/2006 0.22 0.34 94.53 74.64 3.73 0.82 0.15 4.84 07/2003 - 06/2006 0.23 __-_._ 0.60 94.03 69.50 ~~ 2.48 0.93 0.26 5.57 10/2003 - 09/2006 0.18 0.24 93.98 73.21 4.82 0.73 0.12 5.20 Avg. of 17 rolling periods 0.01 0.30 98.37 29.47 217.60 0.37 0.13 57.36 Bogdahn Consulting, LLC. "simplifying your investment decisions" ~"~"" ~~" ,~~`_>~_ >,~`.s. 1299 Ocean Avenue, 2nd Floor Santa Monica, CA, 90401 CONTACT: Mr. Bradley Schluter TEL: 310-255-4436 FAX: 310-255-4536 PRODUCT ASSETS: $596.00 MILLION FIXED INVESTMENT PHILOSOPHY - The yield curve at equilibrium has the natural shape of a gradual upward sloping curve in order to compensate investors for maturity risk. The various forces that control the yield levels at different parts of the yield curve, Federal Reserve monetary policy at the short end and inflationary expectations at the long end, can cause the yield curve to deviate from its equilibrium shape by flattening or steepening. A distorted yield curve will tend to revert to its equilibrium shape over time, creating inefficiencies and investment opportunities for excess return. Spread sectors offer excess yield over equivalent duration Treasuries to compensate investors for credit and/or convexity risk. Excess yields can deviate from their fair values due to cyclical, monetary, or market pressures. Excess spreads that have deviated from their equilibrium levels will tend to return over time, offering investment opportunities for excess return. The high volatility in the financial markets creates investment opportunities that can be capitalized upon by employing non-linear mathematical techniques to identify patterns within the apparent randomness. Yield curves and sectors that have been distorted from their equilibrium levels will tend to return to their fair values at various speeds and accelerations offering short-term investment opportunities. The usage of non-linear methodologies allows PIA to identify the sectors that are the most likely to return to their equilibrium levels the fastest, therefore, maximizing the portfolio's rate of return without accepting greater risk. INVESTMENT DECISION-MAKING PROCESS - Our investment process was designed to exploit the periodic inefficiencies in the yield curve caused by cyclical, monetary or market pressures, by capitalizing on these opportunities to achieve above average yields adjusted for risk and the potential for capital gains, as the yield curve reverts to its normal shape. While the concept of a "yield curve" is generally associated with Treasury securities, our proprietary methodology analyzes the yield curves for all major bond market sectors. We maintain and analyze a proprietary database of over 75 bond market sectors, which provides insight into the probabilistic nature of shifts in these yield curves. Portfolio Construction, which includes sector selection, yield curve positioning and portfolio duration is where PIA seeks to add value. New accounts are constructed with government securities to minimize transaction costs, with the primary objective of establishing the desired portfolio duration. Portfolios typically take up to three months to PACIFIC INCOME ADVISERS, INC. MODERATE DURATION (SMA) become fully seasoned in the model portfolio, which limits corporate holdings to 3% positions. Seasoned portfolios are structured to emphasize sectors that we believe are most likely to benefit from declines in relative yields as the various yield curves revert to their normal shape. We do not raise cash or attempt to time the market. Sector Selection/Allocation: We establish the fair value equilibrium spreads for various market sectors, based on risk measures for credit, spread volatility and convexity. For corporate sectors, the product of sector duration and spread volatility serves to quantify sector risk. The sector spread adjusted for this risk serves as the sector risk-adjusted value. For mortgage sectors both option-adjusted spread adjusted for model idiosyncrasies and volatility and prepayment sensitivities serve to quantify the sector risk-adjusted value. Emphasizing the undervalued sectors produces our sector selection decision. Duration Decision: Portfolio duration is a by-product of our sector analysis and driven by the shape of the "risk-adjusted" yield curve. Nortrtally, when the yield curve is steep, portfolio duration tends to be longer than average. When the yield curve is flat or inverted, portfolio duration tends to be shorter than average. The portfolio duration may deviate from the Lehman Brothers Aggregate Index by +/- 20%. Security Selection is not intended to be a material source of value-added. We purchase securities that assist in achieving the composition goals of the portfolio, i.e. a) securities that are consistent with the Investment Policy Statement; b) securities in sectors that we rank as undervalued on a risk-adjusted basis. We employ several strategies to select securities within the undervalued sectors. Optimization and barbell bullet strategies are used to select Treasury bonds. In selecting individual corporate securities, we rely on fundamental credit research and ratio analysis combined with proprietary analysis of the credit-spread curve. Mortgage-backed and Asset-backed securities are selected by utilizing several sophisticated quantitative measures including: OAS analysis, cash flow sensitivities, effective duration and convexity. Tactical Allocation: We apply neural network methodologies, as well as non-linear statistical techniques to identify which of our universe of undervalued sectors will be the most likely to return to fair value the fastest. We overweight these sectors using the tactical component of our portfolio (10%-20% based on client return target and risk tolerance) and establish a short target horizon (1 to 3 months) to exit the position as the acceleration of its spread movement decreases. Credit Research: We meet C~ 20067nforma Investment Solntions, Inc., www.informais.com ,., :.,:. ~~» 2 -~;' ,: MBIA ASSET MANAGEMENT GROUP CORE FIXED INCOME optimum duration for each sector is determined based on the current risk return profile for a given level of duration as presented to the ISC by the sector specialist. Using the guidelines established by the ISC, each of the sectors specialist's works closely with research analysts, and together they are responsible for the individual security selection within their areas of expertise. This rigorous bottom-up process is rooted in fundamental credit analysis and MBIA's proprietary research. Virtually all investments in corporate credits are based on MBIA's internal credit analysis and subsequent decisions. KEY INVESTMENT OFFICER: TEAM APPROACH Clifford D. Corso Current Position: President, CIO, 1994 -PRESENT Current Firm: MBIA Asset Management Group Responsibility: Chief Investment officer Professional Accreditation: Education Undergraduate: Yale University, BA Economics Education Graduate: Columbia University, MBA Finance Year of Birth: 1961 Phone:914-765-3272 email: clifford.corso@mbia.com Previous Position: 1992-1994 Company: Shields Alliance Capital Management Title: FM E. Gerard Berrigan Current Position: Managing Director, 1994 -PRESENT Current Firm: MBIA Asset Management Group Responsibility: Fixed Portfolio Manager Professional Accreditation: Education Undergraduate: Bucknell University, BS Education Graduate: Columbia University, MBA Finance Year of Birth: 1962 Phone:914-765-3271 email: gerry.berrigan@mbia.com Previous Position: 1991-1994 Company: Fed National Mortgage Assoc. Title: RA, FM FEES AND MINIMUM ACCOUNT: SEPARATE ACCT: First $SMM at .0040, next $2.SMM at .0035, next $2.SMM at .0030, next $15MM at .0025, next $25MM at .0020, over $SOMM fee is negotiable; Min Acct Size: $ IOMM; Min Fee: $15,000 LAST MODIFIED ON: 10/20/2006 ©1006Informa Investment Solutions, Inc., www.informais.com ,,,~. (c ~II~P..t ~E Fee: $12,500 LAST MODIFIED ON: 4/27/2006 GALLIARD CAPITAL MANAGEMENT BROAD MARKET © 2006Infornru /nvestment Solutions, Inc., www.infornruis.conr 113 King Street Armonk, NY, 10504 CONTACT: Mr. Andrew Goodale MBIA ASSET MANAGEMENT GROUP CORE FIXED INCOME FIXED INVESTMENT PHILOSOPHY - MBIA's applies a consistent and disciplined construction process to all of its fixed income portfolios. At the heart of MBIA's approach is a heavy reliance on its superior credit analysis, which adds value through the understanding of credit risk which is fundamental to its investment strategy. MBIA seeks to add risk-adjusted value to its fixed income portfolios by applying relative value sector rotation, security selection, and to a lesser extent, yield curve positioning and duration management. MBIA firmly believes that a focus on the fundamentals of security selection and sector rotation hold the long-term key to successful fixed income investment performance rather than speculation on future market movements. MBIA's goal is to achieve superior risk-adjusted retums over an extended investment horizon. In MB[A's view, consistent returns are the result of diligent credit analysis, which uncovers value undetected by the market in general, rather than relying on highly volatile interest rate timing strategies. MBIA employs both a top-down and a bottom-up approach to its portfolio management process. The foundation of the investment framework is a bottom-up approach to security selection. MBIA relies on a team of credit analysts and portfolio managers focused on specific sectors to provide fundamental analysis of each potential investment. This team approach ensures a broad and consistent understanding of individual credits and how they fit into MBIA's overall credit and portfolio management goals. MBIA's unsurpassed strength in credit management, coupled with its long-term view of credit exposure, is an integral part of its security selection process. By consistently controlling credit risk, MBIA has been steadily able to reduce volatility in its portfolios, resulting in higher risk adjusted performance. MBIA uses a top-down quantitative framework for making sector allocations and duration/yield curve judgments. While MBIA does not expressly forecast interest rates levels or individual bond prices, it does incorporate available economic data and inflationary expectations into its yield curve and duration strategies. Market specialists, credit analysts and senior portfolio management comprise the Investment Strategy Committee (ISC). This committee is comprised of the chief investment officer, portfolio managers, sector specialists and credit analysts and meets bi-weekly to synthesize economic data and market forecasts into a consensus view of future market movements. These bi-weekly meetings are supplemented with periodic updates on the most recent changes in the markets. MBIA uses a duration target TEL: 914-765-3365 FAX: 914-765-3857 PRODUCT ASSETS: $71.94 MILLION range, relative to the benchmark, of +/- 20 percent, to provide a consistent framework among its individual portfolios. [n addition, MBIA uses sophisticated modeling to analyze potential prepayment exposures and achieve an accurate measurement of each portfolio's duration exposure. Individual portfolios are permitted to exceed the duration bands for a period of time based on individual client needs and recent portfolio activity. However, such variations are monitored daily and must be justified at the bi-weekly ISC meeting. INVESTMENT DECISION-MAKING PROCESS - The foundation of the MBIA's buy/sell discipline is based on the sector specialist's relative value outlook for a given security. Relative value is established by analyzing the probable level of compensation to be derived for a given level of risk. This risk/return tradeoff is fundamental to MBIA's investment approach of providing superior risk-adjusted retums over an extended investment horizon. All portfolio selections are reviewed to ensure that they are consistent with current ISC and client guidelines. Securities are sold for the following reasons: when the market price has reverted to a fair value, when either duration targets or sector allocations of the overall strategy have changed, when the credit quality or future credit outlook has changed, or when opportunities to obtain higher relative values from different securities within the same sector present themselves. PORTFOLIO CONSTRUCTION - MBIA's approach to portfolio construction is rooted in its investment philosophy, which is built on credit analysis and takes into account a consensus view among its investment professionals. Thus, portfolios are both constructed and managed collectively. MBIA uses a two stage process: The first stage applies atop-down approach to establish the guiding strategy while the second stage utilizes a bottom-up approach to make individual security selections. The investment strategy, including sector allocation, credit quality, yield curve positioning and duration targets, is set for portfolios by the ISC at its bi-weekly strategy meeting. Duration target decisions are based on duration bands which direct the overall risk profile of portfolios relative to their benchmarks and the consensus outlook on the term structure of interest rates. Sector allocations are made based on the relative valuation of different market sectors and individual client guidelines. Duration management is extended to each of the individual market sectors. The © 2006 /nforma /m~estment Solutions, /nc., www.informais.com ~~ ~ i ~~. DWIGHT ASSET MANAGEMENT COMPANY CORE Responsibility: Fixed Portfolio Manager Professional Accreditation: CFA Education Undergraduate: University of Vermont, BS Phone:802-383-4170 email: Previous Position: 1999-2000 Company: Salomon Smith Barney Citibank Title: Quantitative Analyst Peter M. Milne Current Position: Sector Portfolio Manager, 1999 - PRESENT Current Firm: Dwight Asset Management Company Responsibility: Fixed Portfolio Manager Professional Accreditation: Education Undergraduate: University of Vermont, BS Phone:802-862-4170 email: Previous Position: - Company: Title: FEES AND MINIMUM ACCOUNT: SEPARATE ACCT: 0.35% on the first $20MM, 0.25% on the next $30MM, 0.20% on the next $SOMM, 0.15% on the next $150MM, 0.10% on assets over $250MM; Min Acct Size: $20MM COMMINGLED FUND: 0.25% on all assets; Min Acct Size: $5 MM LAST MODIFIED ON: 10/17/2006 © 2006Informa Investment Solutions, Inc., www.informais.com °;:r; x ~;; .~.., .~ m ~~4 800 Lasalle Avenue, Suite 2060 Minneapolis, MN, 55402-2033 CONTACT: Mr. Michael D. Norman TEL: 612-667-3219 FAX: 612-667-3223 PRODUCT ASSETS: $3,192.34 MILLION FIXED INVESTMENT PHILOSOPHY - Investment Philosophy: At Galliard, we believe the appropriate role of fixed income investments is to control risk and deliver competitive total returns over a longer time horizon. As such, we actively manage fixed income portfolios within a structured risk management framework to assure portfolio risk characteristics and tracking error never deviate substantially from the selected benchmark. We add value primarily through sector emphasis and individual security selection utilizing a fundamental valuation process. Providing an above average yield is a major focus and a significant source of excess return. Positioning based on interest rate movements is minimized because it introduces unacceptable risk to achieving long term portfolio objectives. Our goal is to deliver consistent, value added returns which we believe will result in superior longer term returns on both an absolute and risk adjusted basis. Investment Process: Our investment process begins with a thorough understanding of our client's unique investment objectives and needs. Portfolios are then tailored to achieve those objectives within specified guidelines utilizing a consistent investment approach. Portfolios are typically managed against an appropriate fixed income index or benchmark reflecting the client's time horizon and risk profile. Risk Control Framework Subject to a client's unique guidelines, all Galliard portfolios are structured within similar risk control parameters as follows: Market Risk: Portfolio Duration -normally within +/- 10% of benchmark duration; Yield Curve Positioning - only modest variations from benchmark in duration segments across the curve Convexity: Equal to or greater than the benchmark Sector Diversification: U.S. Government -maximum of 55%; Mortgage related - 20% to 65%; Asset Backed - 5% to 20%; Corporate/taxable municipal - 20% to 65% Quality: Minimum average quality of portfolio is AA-; Minimum issuer quality is BBB-; No > than 20% in BBB issuers Issuer Diversification: Corporate issuers - </_ .75%; Non-govt. CMO/ABS - </= 5%; GSE direct obligations - < 30% The Broad Market Core Composite has an inception date of 10/1/95. INVESTMENT DECISION-MAKING PROCESS - Galliard's decision making structure is as follows: •Fixed Income Committee. Galliard's portfolios are managed on a team basis. The Fixed Income Committee, which consists of the Managing Partners and sector team heads, determines Galliard's overall investment philosophy and policy. The committee GALLIARD CAPITAL MANAGEMENT BROAD MARKET meets weekly to review portfolio positioning, discuss the market environment, establish strategy and provide direction for strategy implementation. The committee formally reviews all portfolios for strategy and guideline compliance monthly. •Sector Teams. Two sector teams meet regularly including the Corporate Strategy Team and the Structured Securities Strategy Team. Each team consists of a Managing Partner, sector head and other designated analysts. These teams discuss current sector strategy/opportunities for input to the Fixed Income Committee and are responsible for implementation of sector strategies and individual security selection in client portfolios. •Corporate Credit Committee. The Corporate Credit Committee consists of the corporate strategy team members and Managing Partners. This group meets separately to discuss industry and individual credit issues, approve new issuers and review Credit Watch List securities. Each portfolio is assigned to a senior portfolio manager (a Managing Partner) who reviews portfolio activity and positioning regularly and a portfolio manager/trader who is responsible for daily portfolio implementation and cash management. PORTFOLIO CONSTRUCTION - Portfolios underweight the use of treasuries and emphasize diversified spread products to enhance returns. Corporate, mortgage- backed and asset-backed securities facilitate improved performance across a range of business and interest rate cycles. Corporate securities are well- diversified to avoid excessive risk concentrations while enhancing return. The Composite typically consists of 20-50% government securities, 15-40% mortgage- backed and asset-backed securities, and 35-65% corporate securities. Portfolios are reviewed regularly by Galliard's Fixed Income Committee, whose members include Firm's Principals and senior fixed income professionals. KEY INVESTMENT OFFICER: TEAM APPROACH FEES AND MINIMUM ACCOUNT: SEPARATE ACCT: Fees are computed on a case-by-case basis; Min Acct Size: $IOMM; Min Fee: $25,000 COMMINGLED FUND: ;Min Acct Size: $SMM; Min D 2006 /nformu /nvestment Solutions, /nc., www.injormuis.com BOGDAHN CONSULTING, LLC. simplifying your investment decisions Opportunistic Growth Equity Search Process As of 09/30/06 there were 3,032 investment products from 1,041 investment firms in the Domestic Eguity database in M-Search. We used the following criteria to narrow the number of products to a more mana;;eable number. .. Asset Class Domestic Equity 1041 3032 Manager's Stated Product Benchmark Russell 1000 Growth, S&P 500/Citigroup Growth, Russell 3000 Growth 237 337 Returns >_ -99 210 270 5-Yr. Down-Market Capture Ratio <= 103 167 218 3-Yr. Down-Market Capture Ratio <= 103 136 168 5-Yr. R-Squared >= 75 123 149 Total Firm Assets Under Management ($ Millions) >= 350 99 121 Product Assets -Total ($ Millions) >= 50 74 _93 General Approach -Equity Irnaestment Passi~,e Include if description is Not Applicable 71 87 Gross or Net of Fees Gross __ 70 __86 __ _ Average Number of Stocks in a Portfolio >= 30 67 82 Minimum Account Size -Tax Exempt ($ Thousands) <= 10,000 55 68 5-Yr. Sortino Ratio (MAR=O) Sortino Ratio; >= 0.6 44 56 5-Yr. Information Ratio >= 0.20 34 42 The following six investment management firms are presented in the search report: Argent Capital Management Rigel Capital, LLC DG Capital* Sawgrass Asset Management Lateef Investment Management* Renaissance Investment Management * These firms were added to the shortlist even though each firm did not "pass" all of the screens listed above. Argent, Renaissance, and Rigel did not respond to the RFP; however, they passed all of criteria listed in the table above. Bogdahn Consulting, LLC. ~` "simplifying your investment decisions" Summary of Quantitative Analysis: Higher score preferred Below, we evaluate each strategy on a rolling three-year basis using the following five performance measures: Information ratio (IR), Alpha, up-market capture ratio, down-market capture ratio, and Sortino ratio. For each rolling three-year period, we calculated a "score" by equally weighting each performance measure. Since the longest common period for all of the investment strategies was 10/01/2000 to 09/30/06, the overall score is an average of the 17 rolling three-year periods. Notes: - Information ratio is the manager's excess return above index divided by the manager's tracking error (standard deviation of the excess returns). Since tracking error is a measure of active risk, this ratio measures how "efficient" the manager was for the amount of active risk taken. - Sortino ratio is the manager's excess return above a minimum acceptable return (MAR) divided by the deviations below the MAR. The calculations in the tables below are based on a MAR equal to zero (0). - Downside Deviation measures the deviations below a MAR. The calculations in the tables below are based on a MAR equal to zero (0). Tlais statistic was not incorporated in the score calculations. - RAl =return above index. Thrs statistic was not incorporated iir the score calculations Argent Capital Managem 10/1999 - 09/2006 ent: Large 4.98 Cap Equit 0.55 y ~. ~ • . •. ~- 97.10 65.28 0.65 7.08 7.15 7.60 10/1999 - 09/2002 -0.05 0.53 63.26 63.44 -0.61 15.75 9.94 -0.06 01/2000 - 12/2002 3.55 1.08 84.48 63.44 -0.66 16.68 12.70 5.00 04/2000 - 03/2003 1.77 1.00 88.37 66.15 -0.76 18.29 11.81 4.85 07/2000 - 06/2003 5.63 1.01 95.97 66.87 -0.55 16.43 12.56 7.04 10/2000 - 09/2003 5.87 0.93 98.30 68.57 -0.46 15.15 12.08 7.21 01 /2001 - 12/2003 5.09 0.75 102.33 78.66 _ -0.15 12.24 _ 7.52 5.87 04/2001 - 03/2004 4.57 0.61 108.29 84.54 0.41 8.78 5.34 5.87 07/2001 - 06/2004 4.16 0.58 107.87 84.54 0.13 10.19 5.04 5.64 10/2001 - 09/2004 2.48 0.40 107.87 92.88 0.52 7.89 2.52 3.68 01/2002 - 12/2004 3.45 0.64 116.01 92.88 0.36 8.96 3.45 5.52 04/2002 - 03/2005 4.78 0.85 116.01 85.88 0.51 8.05 4.82 7.25 07/2002 - 06/2005 2.71 0.63 116.45 95.19 2.44 4.22 3.03 5.41 10/2002 - 09/2005 3.32 0.68 112.69 69.52 45.65 0.40 3.56 18.56 01/2003 - 12/2005 3.60 0.70 114.67 69.52 36.38 0.47 3.68 17.17 04/2003 - 03/2006 6.74 1.43 119.87 26.07 480.07 0.04 6.34 116.41 07/2003 - 06/2006 4.73 1.01 121.81 62.76 12.94 1.01 4.67 15.55 10/2003 - 09/2006 5.32 1.14 127.23 62.76 12.59 1.09 5.36 16.70 Avg. of 17 rolling periods 3.98 0.82 105.97 72.57 34.64 8.57 6.73 14.57 Bogdahh Consulting, LLC. "simplifying your investment decisions" DG Capital: Opportunistic 10/1999 - 09/2006 Growth .. . • . ~• 13.48 0.81 99.59 22.40 3.67 3.65 15.97 19.03 10/1999 - 09/2002 19.56 1.24 86.76 21.94 _____ 1.06 8.37 28.49 17.34 01/2000 - 12/2002 -0.20 0.82 33.10 21.94 -0.28 8.25 21.32 2.30 04/2000 - 03/2003 -10.47 0.59 -11.24 25.50 -0.92 9.84 16.55 -9.51 07/2000 - 06/2003 -0.32 0.63 25.74 24.86 -0.38 8.92 18.17 0.16 10/2000 - 09/2003 -0.22 0.51 31.02 29.31 -0.36 8.55 15.97 0.33 01/2001 - 12/2003 3.61 0.32 47.49 33.07 0.30 6.79 11.39 3.73 04/2001 - 03/2004 4.48 0.16 57.34 37.64 0.98 5.18 6.84 5.06 07/2001 - 06/2004 6.32 0.33 70.03 37.64 1.25 4.71 9.61 8.06 10/2001 - 09/2004 4.44 0.12 70.03 47.09 1.32 4.55 4.39 5.76 01/2002 - 12/2004 10.06 0.80 ____110.67 47.09 3.16 3.34 10.74 15.52 04/2002 - 03/2005 12.69 __ 1.04 110.67 31.68 5.56 2.33 13.64 19.66 07/2002 - 06/2005 10.14 0.75 108.44 28.16 14.46 1.11 8.78 21.13 10/2002 - 09/2005 7.53 0.64 117.47 22.72 60.72 0.35 6.39 32.73 01/2003 - 12/2005 9.16 1.49 139.97 22.72 530.01 0.04 9.80 131.58 04/2003 - 03/2006 12.19 2.23 143.03 -21.93 326,223.33 0.00 12.33 65,280.54 07/2003 - 06/2006 11.31 2.10 147.37 _ 0.99 _ 5,723.37 0.00 11.08 ~ 1,176.63 10/2003 - 09/2006 9.51 _ ~ 1.27 131.80 0.99 228.30 0.08 9.08 73.98 Avg. of 17 rolling periods 6.46 0.88 83.51 24.20 19,575.99 4.26 12.62 3,928.53 Lateef Investment Manag 10/1999 - 09/2006 ement: All 15.94 Cap Growth Equity 1.43 120.10 .. ~ • . • . ~- 28.45 6.01 2.57 18.04 23.01 10/1999 - 09/2002 27.96 2.60 124.71 27.91 1.79 6.82 31.82 25.83 01 /2000 - 12/2002 17.451 2.00 ~ 102.74 27.91 0.47 ~ 7.58? 27.18 18.95 04/2000 - 03/2003 12.80 1.71 90.28 30.70 -0.12 9.381 24.48 14.79 07/2000 - 06/2003 16.16 1.65 93.19 30.97 0.46 8.09 j 25.25 16.10 10/2000 - 09/2003 15.27 1.46 96.77 35.53 0.61 7.48 23.62 15.72 01 /2001 - 12/2003 14.73 1.34 103.52 _ 44.03 ~~ 1.53 5.91 18.39 15.42 04/2001 - 03/2004 ~~ 14.12 110.54 1.19 43.49 3.79 3.63 15.49 17.23 07/2001 - 06/2004 12.27 1.071 104.66 43.49 2.11 ; 4.88 14.07 15.32 10/2001 - 09/2004 14.07 1.06 104.66 21.13 7.67 2.08 14.37 21.27 01 /2002 - 12/2004 13.71 1.11 107.69 21.13 5.54 2.59'; 14.50 21.38 04/2002 - 03/2005 10.10 0.95 _107.69 44.25 3.43 3.03' 11.10 15.58 07/2002 - 06/2005 ~~ _ 7.16~ _ ~ _ 0.94 115.95 61.78 5.06 2.73 6.57 13.47 10/2002 - 09/2005 7.81 0.86 118.58 38.26 184.85 0.11 ? 5.93 54.77 01 /2003 - 12/2005 8.72 1.47 132.36 38.26 109.40 0.19 7.90 42.74 04/2003 - 03/2006 12.02 2.30 138.02 2.08 697,777.87 0.00 10.51 139,585.63 07/2003 - 06/2006 11.17 2.65 150.52 14.28 291.77 0.07 10.81 88.37 10/2003 - 09/2006 9.74 1.75 138.18 14.28 428.29, 0.04 9.24 112.74 Avg. of 17 rolling periods 13.25 1.54 114.12 31.73 41,107.32 3.80 15.95 8,240.90 Bogdahn Consulting, LLC. "simplifying your investment decisions" Renaissance Investment tQ/1999 - 09/2006 Management: Large 7.23 0.80 Cap Grow 112.43 th .. ~ ~ - . ~• 70.52 0.76 7.49 8.29 10.14 10/1999 - 09/2002 3.49 0.60 93.23 76.81 -0.57 18.95 8.77 3.99 01 /2000 - 12/2002 7.57 1.04 116.87 76.81 -0.65 20.32 10.54 9.60 04/2000 - 03/2003 9.55 1.23 121.54 72.88 -0.69 20.36 11.70 11.75 07/2000 - 06/2003 17.36 2.35 132.23 65.57 -0.30 16.02 16.77 17.21 10/2000 - 09/2003 16.21 2.13 131.45 68.09 -0.20 14.91 16.15 16.30 01/2001 - 12/2003 13.89 2.06 129.15 73.03 0.37 11.07 13.41 14.49 04/2001 - 03/2004 14.94 2.17 137.85 65.41 2.29 5.80 15.03 18.37 07/2001 - 06/2004 13.22 1.79 131.86 65.41 1.32 7.20 13.26 16.56 10/2001 - 09/2004 14.73 1.94 131.86 44.26 5.88 2.82 14.97 22.03 01 /2002 - 12/2004 14.40 1.93 134.99 44.26 3.78 3.84 14.69 22.17 04/2002 - 03/2005 13.68 1.85 _ 134.99 50.04 3.12 4.26 13.98 20.72 07/2002 - 06/2005 8.51 1.69 129.90 57.74 4.48 3.67 9.18 17.37 10/2002 - 09/2005 9.21 1.79 128.98 -18.05 1,283.16 0.02 10.16 288.24 01 /2003 - 12/2005 9.73 2.11 137.17 -18.05 560.02 0.04 11.04 145.42 04/2003 - 03/2006 7.75 1.87 136.41 20.47 802.55 0.03 9.52 185.62 07/2003 - 06/2006 6.27 1.47 132.47 53.37 59.40 0.25 6.51 29.25 10/2003 - 09/2006 5.68 1.25 127.19 53.37 30.60 0.46 5.84 22.27 50.67 Rigel Capital: Large Cap 10/1999 - 09/2006 Growth ~. ~ • . •. ~- 8.91 0.84 99.87 51.32. 1.22 6.42 10.41 11.90 10/1999 - 09/2002 21.62 2.06 131.89 54.77 0.20 13.27 22.31 20.20 01 /2000 - 12/2002 5.26 1.12 79.04 54.77 -0.57 14.71 15.31 6.02 04/2000 - 03/2003 -1.04 0.93 43.27 53.40 -0.80 16.22 12.68 -2.21 07/2000 - 06/2003 1.65 0.82 50.93 52.11 -0.61 14.56 12.64 0.14 10/2000 - 09/2003 1.24 0.66 53.84 55.06 -0.58 13.66 11.11 0.02 01 /2001 - 12/2003 2.80 0.44 62.41 55.60 -0.14 9.92 8.01 1.98 04/2001 - 03/2004 3.27 ~ 0.26 68.51 55.49 0.49 7.09 5.22 3.41 07/2001 - 06/2004 3.04 0.31 68.10 55.49 0.24 7.55 5.58 3.24 10/2001 - 09/2004 4.25 0.25 68.10 43.73 1.41 4.42 4.60 6.06 01/2002 - 12/2004 4.74 0.39 72.86 43.73 1.14 4.84 5.72 7.08 04/2002 - 03/2005 4.63 0.40 72.86 44.99 1.07 4.83 5.84 6.79 07/2002 - 06/2005 3.06 0.07 76.33 50.55 2.33 3.72 1.39 6.25 10/2002 - 09/2005 4.70 -0.09 80.01 16.74 17.98 0.81 -0.21 17.17 01 /2003 - 12/2005 7.00 0.80 103.68 16.74 167.94 0.10 4.03 52.54 04/2003 - 03/2006 7.10 0.71 103.92 20.90 753.76 0.02 3.66 168.92 07/2003 - 06/2006 5.89 1.42 114.48 38.69 29.24 0.46 4.97 22.47 10/2003 - 09/2006 4.53 0.68 102.95 38.69 27.84 0.43 3.50 19.46 Avg. of 17 rolling periods 4.93 0.66 79.80 44.20 58.88 6.86 7.43 19.97 Bogdalm Consulting, LLC. "simplifying your investment decisions" Sawgrass Asset-Large Ca 10/1999 - 09/2006 p Growth: 3.01 Large Cap Growth E 0.34 73.78 quity .. ~ • . • . .• 53.58 0.51 6.65 5.95 4.81 10/1999 - 09/2002 0.91 ~ 0.63 54.98 53.0 9 -0.54 13.20 12.50 0.58 01/2000 - 12/2002 -0.45 0.84 49.17 _ 53.09 -0.72 15.05 12.85 -0.85 04/2000 - 03/2003 1.40 1.12 60.17 52.36 -0.74 15.10 14.46 1.92 07/2000 - 06/2003 3.87 0.98 66.29 53.15 -0.54 13.73 14.18 3.49 10/2000 - 09/2003 4.01 0.86 67.05 53.76 -0.46 12.43 13.36 3.54 01 /2001 - 12/2003 5.31 0.63 73.52 54.19 0.12 8.39 10.34 5.08 04/2001 - 03/2004 2.91 0.30 73.90 62.74 0.35 8.20 4.61 2.94 07/2001 - 06/2004 3.10 0.39 75.85 62.74 0.18 8.49 5.26 3.36 10/2001 - 09/2004 2.44 0.17 75.85 62.98 0.81 5.44 2.78 3.26 01 /2002 - 12/2004 2.47 0.25 77.19 62.98 0.53 5.81 3.27 3.49 04/2002 - 03/2005 2.81 0.31 77.19 61.24 0.51 6.12 3.80 3.92 07/2002 - 06/2005 0.78 -0.14 79.31 71.97 1.47 4.77 -0.26 1.89 10/2002 - 09/2005 1.10 -0.36 80.41 56.49 17.23 0.76 -1.71 8.38 01/2003 - 12/2005 2.16 0.16 92.97 56.49 32.85 0.42 0.65 14.33 04/2003 - 03/2006 2.80 0.28 96.88 57.31 45.38 0.35 1.05 17.61 07/2003 - 06/2006 2.16 0.65 101.06 69.49 9.15 1.10 1.71 8.71 10/2003 - 09/2006 2.99 1.10 109.06 69.49 8.14 1.36 2.72 10.36 Avg. of 17 rolling periods 2.40 0.48 77.11 59.62 6.69 7.10 5.97 5.41 Bogdahn Consulting, LLC. "simplifying your investment decisions" r III~~III '3 i$ L~. Y~.; 260 Franklin Street, Suite 1600 Boston, MA, 02l 10 CONTACT: Mr. Gary Williams TEL: 617-896-1508 FAX: 617-896-1501 PRODUCT ASSETS: $1,210.90 MILLION EQUITY INVESTMENT PHILOSOPHY -Our basic investment philosophy encompasses three tenants: earnings drive stock prices, companies that generate earnings surprises tend to outperform the general market, and avoiding downside volatility is the key to long-term investment outperformance. Our primary source of value is stock selection using a fundamental bottom-up technique. We offer an all-cap equity product designed to capture as much as the upside returns of the US equity market as possible while attempting to limit inherent downside volatility. We use a wide universe of capitalization opportunities to constnrct our portfolios. We also use an extensive series of risk control strategies to protect clients from downside risk. Selected special situations are also utilized on a limited basis. Inception date: November 1996 INVESTMENT DECISION-MAKING PROCESS - The majority of research is generated intemally. "Street" research complements our original work in the large cap area as we utilize key "street" analysts at different firms for different sectors. Small and mid cap research is generated internally working closely with industry contacts and regional brokerage firms. We look for companies with growing revenues, a history of strong management and reasonable price to eamings valuation. The investment team meets formally once a week, and informally on a daily basis to discuss investment ideas. Internal research is combined with information gleaned from industry contacts, channel checks, company meetings and conferences. Research teams look for companies with growing revenues, a history of strong management and reasonable price to earnings valuation. Earnings models are used to develop price targets, which are then monitored daily. PORTFOLIO CONSTRUCTION -The majority of the portfolio is built with a range of mid to large capitalization names, with a core to growth style bias. The portfolio also invests in value oriented stocks and special situations opportunities when available. Portfolio managers look for companies with growing revenues, a history of strong management and reasonable price to eamings valuation. We will opportunistica-ly use short selling (0-10% of portfolio), with client approval. Cash is used as a hedge in deteriorating markets. Large cap purchases are made based on positive valuation levels plus a catalyst (new management, product line, acquisition etc.). Mid and small cap purchases are made with less focus on DG CAPITAL MANAGEMENT, INC. OPPORTUNISTIC GROWTH valuation, but more focus on eamings momentum or a near term specific event (earnings surprise etc.). New accounts are generally fully invested in a month based on a clone of the master account (barring any client mandated restrictions). Stocks are sold when they meet their price targets, their fundamentals deteriorate or if they no longer meet their original purchasing criteria. We are quick to trim or eliminate positions based on changing fundamentals as part of our effort to maintain downside protection. KEY INVESTMENT OFFICER: TEAM APPROACH Manu P. Daftary Current Position: President and Principal, 1996 - PRESENT Current Firm: DG Capital Management Responsibility: Chief Investment officer Professional Accreditation: CFA Education Undergraduate: California State University-Long Beach, BS -Finance; Education Graduate: California State University-Long Beach, MBA Year of Birth: 1957 Phone:617-896-1500 email: mdaftary@dgcap.com Previous Position: 1993-1995 Company: Hellman, Jordan Title: VP & Portfolio Manager Chris P. Perras Current Position: Co-Portfolio Manager, 2002 - PRESENT Current Firm: Responsibility: Equity Portfolio Manager Professional Accreditation: CFA Education Undergraduate: Georgia Institute of Tech, BS Education Graduate: Harvard College, MBA Year of Birth: 1965 Phone:617-896-1500 email: cperras@dgcap.com Previous Position: 1999-2002 Company: AIM Capital Management Title: Portfolio Manager ©2006 /nfornta Investment Solutions, /nc., www.informuis.cont ~~: -:, DG CAPITAL MANAGEMENT, INC. OPPORTUNISTIC GROWTH FEES AND MINIMUM ACCOUNT: SEPARATE ACCT: 85 BP I st $25MM, 70 BP Balance We also encourage clients to consider performance fee arrangements. Min Acct Size: $10 MM; Min Fee: $85,000 MUTUAL FUND: All assets at 1.99% Distributed by the Quaker Fund Group LAST MODIFIED ON: 7/11/2006 © 2006Informa Investment Solutions, Inc., www.informais.com a: , t~ 300 Drakes Landing Road, Suite 100 Greenbrae, CA, 94904 CONTACT: Mr. Ryan Willson LATEEF INVESTMENT MANAGEMENT ALL CAP GROWTH EQUITY EQUITY INVESTMENT PHILOSOPHY - Our investment style, "Growth-at-a-Price" embraces both the growth and value approaches to investing. In the value approach we like to buy depressed cyclicals, i.e., a company in a cyclical industry, when the industry or the company is doing poorly and where we can see an upturn in the future. We have also achieved some of our best successes in building client capital on a long term basis by identifying, buying and holding outstanding companies in growth industries, companies not faced with cutthroat competition, but run my outstanding managements. INVESTMENT DECISION-MAKING PROCESS - Our main approach to investing involves five key elements: 1) our own studies and analysis of various companies, 2) our visits to the plants and headquarters of these companies, 3) our contacts with management and employees, as well as, with 4) suppliers, competitors and customers of those companies, and 5) with others in and out of the particular industries of which these companies are a part. All decisions are made by the team of PM's. To supplement our own work we also use outside sources to provide us with the further breadth and depth of information and opinion. Our network of contacts, executives, industry consultants, and associations in many industries, built up over the years, continues to give us access to a wide array of sources of information. Furthermore, within the securities industry itself, we have access to a group of individuals, with whose proven work and quality ideas we have been familiar for years. We utilize these people and their ideas as backup to our own work to hopefully arrive at a well rounded picture of the companies and industries we analyze. We are often asked how we are unique from other investment managers. One of the areas we believe separates us, not from all managers, but from a substantial majority, is that we visit most of the companies in which we invest; we get to know the managements, the employees, the other industry participants, suppliers, etc., and we build relationships with these people over the years. Trade shows are an excellent source of intelligence on a particular industry. While we are not the only investment manager that works this way, it is a methodology we have used, practiced and honed over many years and with which we are experienced and very comfortable. Unfortunately, it is a fundamental methodology practiced by a decreasing percentage of investment managers. We use computers to keep our books, not to make investment decisions. There are TEL: 415-461-3800 FAX: 415-461-0436 PRODUCT ASSETS: $2,892.03 MILLION many ways up the mountain, but this one, emphasizing fundamentals and "kicking the tires", is the one that works for us. PORTFOLIO CONSTRUCTION - Lateefs primary analytical technique is a fundamental, bottom-up, company by company approach wherein we focus on: The nature of a company's business, its competitive advantages, its ability to be a low cost producer, its overall management (and the leadership ability of that management), its marketing and sales capabilities, its attitude towards its customers and employees, the growth potential of the industry in which it participates, and its balance sheet, and profitability. We supplement these techniques with technical analysis and with the basic standard valuation techniques that pertain to both growth stocks and so-called value stocks. Investment history has reliably shown that, in general, the longer the period measured, the higher the correlation between earnings and stock prices. In the near term, many factors other than earnings move stocks up and down - wars, recessions, interest rates, political shifts, among others. Such items become far less important, while earnings become of dominant importance, in the long term. Some characteristics we look for in equity selection: Earnings Acceleration It is rare to find examples of a stock with a significant upward movement over a meaningful period of time unaccompanied by an acceleration in the growth of earnings. To identify these situations early enough to profit from them requires an efficient screening process, a good awareness of industry cycles and the ability to ascertain the fundamental reasons for the acceleration. In this process, technical analysis may play a slightly larger role than in the rest of our work in bringing such ideas to light. But here again, our extensive network of contacts in many industries comes into play. Asset Revaluation Very often a company's value in the market does not accurately reflect the value of the company's underlying assets if those assets can be better put to work. An upward revaluation can occur when assets are redeployed by existing management or new owners, intent on raising the rate of return. In addition, we stay aware of reorganizations involving spin-offs and divestitures. Often such "new entities" are under-followed and neglected by Wall Street for a period of time following spin-off or divestiture, thus bringing about an investment opportunity. Group/Sector Attractiveness One of the market's important characteristics is the tendency for a group of stocks, or the sector or industry with which a stock is ©2006Infornru InvestnrentSolutions, Inc., www.infornruis.com ~n ~w ~a,~yF~ ~~ :-.. LATEEFINVESTMENT MANAGEMENT ALL CAP GROWTH EQUITY identified, to have more bearing on its attractiveness in the market than the company's fundamentals may justify. The identification of financial and economic trends that lead to rises in equities of a particular industry group, risk sector (such as small capitalization stocks), or yield sector of the market can provide important investment opportunities, but also sometimes this phenomenon can present opportunities to sell a suddenly overvalued stock where the fundamentals are lagging, or deteriorating. New Emerging Industries There have also been plenty of opportunities over the years to profit from identifying and investing in industries and industry niches in which a new fundamental way of doing things is emerging. We are thinking of examples such as how Federal Express literally created a new industry -overnight delivery, how Wal-Mart changed retailing, and in more recent years, the trend to corporate outsourcing of various services and even of manufacturing, how the enormous and ongoing wave of globalization is raising living standards around the world; how the Internet is changing the world and opening up new opportunities for investment as well as offering challenges to many existing businesses. Changes in Socio-Economic Behavior or in Demographics Examples of changes in Socio-economic behavior include changes in dress codes and mores, less time spent watching television and more time spent on-line, the rise in the number of people doing business from their homes, the decrease in cigarette smoking and the recent rebound in alcohol consumption. In demographics, the first of the baby boomers began fuming 55 in 2001 and considering the enormous impact that group has had on other segments of the economy over the years, it would be folly to underestimate the likely impact this group will have in the next 20 years on the travel and leisure industries, on the demand for second homes, on the savings rate and the investment industry, and on the ethical drug and health care industries. Following are some of our main investment criteria for identifying specific growth companies for investment. We like companies that ... are industry leaders, have proprietary products and/or special know-how in their respective industries, are one-of-a-kind companies, have low debt/equity ratios, are in fields having high barriers to entry, i.e. limited direct competition, are low cost producers and work hard at maintaining that advantage, retain pricing power, have the ability to self finance growth (finance growth from retained earnings), have significant and sustainable competitive advantages, have sustainable, above average profitability both in terms of operating margins and/or return on equity capital, and ...operate in open-end, growing markets. Our valuation preference, when we find an outstanding leadership company, is that the stock of that company be depressed for some temporary, "non structural" reason, or from some misperception by Wall Street so that the earnings multiple of the stock is at a significant discount from return on equity (net income as a % of net worth, or equity capital, or book value). Our focus on investing primarily in industry leaders is based on the following reasons: An industry leader is almost axiomatically the low cost producer; it then follows usually that it is the most profitable company in its industry. That in turn gives it real and solid competitive advantages over its competitors; because it is more profitable than its competitors, it has more discretionary monies to devote to research and development, and sales and marketing; it needs to use less debt to finance its growth. Above average profitability that appears sustainable due to certain long embedded competitive advantages is generally a hallmark of our portfolio companies. The average return on net worth for the Lateef Investment Management universe of com- panies generally exceeds 20%. Over several decades, the typical U.S. Corporation has shown a materially low return. We previously alluded to the power of compound interest. As an example, acorn-pany with a return on net worth of 22% compounded over 3-1/2 years approxi- mately doubles net worth in that period of time. Holding shares of companies with this kind of profitability over a long period of time (our preferred holding period) can have remarkable results. A lot of companies only have a high return on assets for a year or two. We remain committed to focusing on companies from which we can be reasonably confident of producing sus- tamed high returns on invested capital. We spend significant time looking at how cash flows are spent by management, as well as the competitive situation in the present, and thinking how it might evolve in the future. There are a few rare businesses with practically unassailable competitive advantages; these are sound companies with little or no competition. Such companies or businesses have high barriers to entry. A business or company with little competition is a marvelous thing to behold. If management and employees can stay constantly wary about the potential onset of competition, avoid arrogance and complacency, and maintain their drive to expand markets, lower costs, and develop new products or services, one may have the type of company that can go on for years as an outstanding long term investment. ©1006Informa Investment Solutions, Inc., www.informais.com ~, '"' 'l .;~.~.~w„~. a f LATEEFINVESTMENT MANAGEMENT ALL CAP GROWTH EQUITY Certainly not all our companies have limited competition, but it is a characteristic we seek. We also try to identify undervalued situ- ations, i.e. companies with low price- earnings ratios, companies in which the parts of the company added together appear worth more than the market value of the whole company, and finally, compa- Hies selling for less than asset value-with the hope that in time the market will revise its valuation upward. Often these are cyclical companies whose stocks regularly become available at depressed valuations at the trough of their cycles. We believe we have had a good deal of experience and success in identifying and buying such companies when their earnings and their common stock prices have been depressed, and then selling when improved profitability has been recognized by the market. Many companies - indeed a large majority - do not fit the above cri- teria, and we avoid such companies. Simply stated, our philosophy here comes down to: many are called, few are chosen. KEY INVESTMENT OFFICER: TEAM APPROACH FEES AND MINIMUM ACCOUNT: SEPARATE ACCT: $0-$ISMM: 1% $1 S-$30MM: 0.75% $30-$45MM: 0.625% Over $45MM: 0.50%; Min Acct Size: $1,000,000.00; Min Fee: $10,000.00 LAST MODIFIED ON: 11/28/2006 ©20067nformu Investment Solutions, Inc., www.informuis.com ,~,, , °,.~„~. =gin. RENAISSANCE INVESTMENT MANAGEMENT LARGE CAP GROWTH 625 Eden Park Drive, Suite 1200 Cincinnati, OH, 45202 CONTACT: Mrs. Jennifer Trowbridge TEL: 513-723-4500 FAX: 513-723-4512 PRODUCT ASSETS: $3,761.40 MILLION EQUITY INVESTMENT PHILOSOPHY - Renaissance believes that investing in attractively priced companies with demonstrated records of above-average profitability and accelerating earnings trends will lead to better investment returns over time. Begun in 1991, Renaissance's Large Cap Growth Strategy employs a disciplined decision-making process to create and manage growth-oriented equity portfolios. Individual issues typically sell at reasonable valuation levels and are supported by above-average corporate profitability and accelerating earnings growth. INVESTMENT DECISION-MAKING PROCESS - The universe consists of the Russell 1000 domestically traded common stocks and is initially screened for those corporations demonstrating above-average levels of profitability, including ROE and ROA, and below-average levels of debt. Typically, 400-500 issues pass through these initial quantitative screens and are considered for purchase. These issues are then evaluated according to specific quantifiable criteria including changes in investor expectations, valuation, and recent earnings trends. The result of this evaluation is a composite ranking for each of the equities. Highly ranked issues are analyzed on a qualitative basis for investment potential. Company fundamentals as well as unusual or unique characteristic or developments of a company are reviewed before the issue is purchased. PORTFOLIO CONSTRUCTION - Portfolios hold approximately 50 issues. Initial investments are equally-weighted. The portfolio is fully invested in equities. There may be a residual amount of cash remaining after purchases. Sector diversification is driven by a bottom up approach. KEY INVESTMENT OFFICER: Michael E. Schroer Current Position: Managing Partner, C[O, 1984 - PRESENT Current Firm: Renaissance Investment Management Responsibility: Chief Investment officer Professional Accreditation: CFA Education Undergraduate: University Cincinnati, BBA - Marketing Education Graduate: Indiana University, MBA - Finance Year of Birth: 1957 Phone: 513.723.4500 email: mes@reninv.com Previous Position: 1982-1984 Company: First of America Bank Title: Analyst, PM FEES AND MINIMUM ACCOUNT: SEPARATE ACCT: .75% first $SMM; .70% on next $SMM; .65% on next $SMM; .60% on next $SMM; .50% on balance Min Acct Size: $5,000,000 LAST MODIFIED ON: 11/15/2006 ©1006Informa Investment Solutions, /nc., www.informais.com BOGDAHN CONSULTING, LLC. simplifying your investment decisions Opportunistic Value Equity Search Process As of 09/30/06 there were 3,032 investment products from 1,041 investment firms in the Domestic Equity database in M-Search. We used the following criteria to narrow the number of products to a more manageable number. Asset Class _ Domestic Equity 1041 .. 3032 -_-^- ~__M Product Benchmark Russell 3000 Value, Russell 1000 Value, Russell 3000, S&P 500 630 1120 5-Yr Returns >_ -99.000 509 881 5-Yr. Down-Market Capture Ratio (rel. to R3000 Value) <= 103.000 371 547 3-Yr. Down-Market Capture Ratio (rel. to R3000 Value) <= 103.000 198 257 5-Yr R-Squared (rel. to R3000 Value) >= 75.000 167 213 Total Firm Assets Under Management ($ Millions) >= 350.000 132 171 Product Assets -Total ($ Millions) >= 50 111 141 General Approach -Equity Irnestment Passive Include if description is Not Applicable 108 135 Gross or Net of Fees Gross 108 134 Average Number of Stocks in a Portfolio ~~ >= 30.000 _ _~~_____.__~-..___a ~ 102 ____._ 125 Account Size -Tax Exempt ($ Thousands) Minimum <= 10,000.000 ~~ _ 76 ____ __ 92 __ ~ _ 5-Yr. Sortino Ratio (MAR=O) Sortino Ratio; >= 2.2 58 67 3-Yr. "Bear Mkt." ended 03/31/03 Dn-Mkt Capture Ratio <= 105.000 47 55 5-Yr. Factor Weighting to Russell 200 Value <= 50.00 38 43 The following five investment management firms are presented in the search report: I Dana Investment Advisors ~ Fifth Third Asset Management ~ i Mesirow Financial Investment Management z Oppenheimer Capital 3 Snow Capital Management Dana and Snow Capital did not respond to the RFP; however, they passed all of criteria listed in the table above. Bogdahn Consulting, LLC. "simplifying your investment decisions" Summary of Quantitative Analysis: Higher score preferred Below, we evaluate each strategy on a rolling three-year basis using the following five performance measures: Information ratio (IR), Alpha, up-market capture ratio, down-market capture ratio, and Sortino ratio. For each rolling three-year period, we calculated a "score" by equally weighting each performance measure. Since the longest common period for all of the investment strategies was 10/01/2000 to 09/30/06, the overall score is an average of the 17 rolling three-year periods. Notes: - Information ratio is the manager's excess return above index divided by the manager's tracking error (standard deviation of the excess returns). Since tracking error is a measure of active risk, this ratio measures how "efficient" the manager was for the amount of active risk taken. - Sortino ratio is the manager's excess return above a minimum acceptable return (MAR) divided by the deviations below the MAR. The calculations in the tables below are based on a MAR equal to zero (0). - Downside Deviation measures the deviations below a MAR. The calculations in the tables below are based on a MAR equal to zero (0). This statistic was not incorporated in the score calculations. - RAI =return above index. This statistic was not incorporated in the score calculations Dana Investment Advisors: Large Ca 1 OIt999 - 09/2006 1.30 p Equity .. . - . • . .- 0.03 93.90 84.94 1.87 4.57 0.56 2.43 10/1999 - 09/2002 4.19 0.49 121.03 88.48 -0.11 9.96 4.36 7.42 01/2000 - 12/2002 -1.01 -0.02 83.01 88.48 -0.35 11.16 0.38 -1.37 04/2000 - 03/2003 -3.63 -0.29 60.43 87.16 -0.58 13.19 -1.60 -6.25 07/2000 - 0612003 -3.99 -0.57 68.69 93.34 -0.25 11.83 -3.57 -5.89 10/2000 - 09/2003 -1.29 -0.20 84.29 93.34 -0.18 10.91 -0.84 -2.14 01/2001 - 12/2003 -0.10 -0.08 91.59 93.34 0.23 9.00 0.00 -0.34 04/2001 - 03/2004 0.42 -0.05 92.86 92.52 0.70 7.55 0.17 0.28 07/2001 - 06/2004 -1.26 -0.35 83.42 92.52 0.26 8.68 -1.40 -2.09 10/2001 - 09/2004 -0.89 -0.41 80.68 86.93 1.21 5.41 -1.76 -1.27 01/2002 - 12/2004 -2.16 -0.76 73.52 86.93 0.84; 6.90 -3.34 -3.10 04/2002 - 03/2005 -1.29 -0.53 75.31 83.84 0.81 6.59 -2.13 -1.91 07/2002 - 06/2005 -0.81 -0.55 77.06 80.38 1.62; 5.50 -2.33 -0.61 10/2002 - 09/2005 1.29 -0.50 83.60 49.97 73.25' 0.25 -2.59 21.53 01 /2003 - 12/2005 2.69 0.05 96.77 49.97 135.53 ~ 0.14 0.43 37.01 04/2003 - 03/2006 2.07 -0.33 92.62 -372.83 1,759.90; 0.01 -1.14 445.42 07/2003 - 06/2006 2.15 -0.16 94.21 -372.83 910.58` 0.02 -0.45 275.92 10/2003 - 09/2006 1.11 -0.50 86.72 -372.83 27,238.60 0.00 -1.82 5,539.75 Avg. of 17 rolling periods -0.15 -0.28 85.05 2.87 1,771.89 6.30 -1.04 370.73 Bogdahn Consulting, LLC. 2 "simplifying your investment decisions" Fifth Third Asset Manage 10/1999-09/2006 ment: All C 5.84 ap Value 0.80 30.93 .. 85.16 .44 ~ .- 3.17 - . - . 6.13 11.21 10/1999 - 09/2002 9.97 0.92 156.26 82.25 0.45( 8.08 9.06 17.07 01/2000 - 12/2002 10.42 0.98 155.57 82.25 0.67, 7.95 9.61 17.08 04/2000 - 03/2003 5.59 0.65 119.83 85.73 -0.10 10.58 5.08 8.05 07/2000 - 06/2003 6.38 0.71 125.44 91.15 0.70 9.08 5.83 8.42 10/2000 - 09/2003 8.55 0.99 141.50 91.15 0.72 8.96 7.61 12.12 01/2001 - 12/2003 8.13 0.99 135.23 91.15 1.27 7.82 7.81 10.89 04/2001 - 03/2004 6.64 0.88 135.46 98.20 1.78 6.74 6.85 9.31 07/2001 - 06/2004 6.34 0.82 135.20 98.20 1.27 7.83 6.32 9.09 10/2001 - 09/2004 5.74 0.77 128.71 92.62 3.08 4.77 6.41 9.14 01 /2002 - 12/2004 2.82 0.57 111.29 92.62 2.30 5.41 3.29 4.87 04/2002 - 03/2005 4.38 1.05 121.32 92.20 2.32 5.34 4.90 7.37 07/2002 - 06/2005 4.39 1.09 121.26 89.33 4.90 3.36 5.24 8.46 10/2002 - 09/2005 -0.29 0.95 121.68 120.71 64.11 0.39 4.30 13.15 01 /2003 - 12/2005 0.16 0.94 124.05 120.71 34.57 0.64 4.16 7.80 04/2003 - 03/2006 0.32 1.26 124.88 26.36 535.82 0.05 5.63 127.18 07/2003 - 06/2006 0.40 0.87 117.10 26.36 237.94 0.08 2.83 65.99 10/2003 - 09/2006 -1.01 0.57 108.50 26.36 507.79 0.04 1.55 117.90 Avg. of 17 rolling periods 4.64 0.88 128.43 82.79 82.33 5.12 5.68 26.70 Mesirow Financial Investment Mana 1.0/1999 - 09/2006 2.37 gement: A 0.22 ll Cap Val 88.20 ue Equity .. . • . • . ~- 64.28 2.74 3.49 1.62 5.85 10/1999 - 09/2002 5.66 1.46 103.66 61.60 0.30 7.31 7.63 9.90 01 /2000 - 12/2002 4.11 0.89 91.23 61.60 0.27 7.46 6.30 6.98 04/2000 - 03/2003 3.35 0.80 89.53 66.47 -0.051 8.38 5.72 5.43 07/2000 - 06/2003 2.24 0.40 89.37 77.09 0.47 7.67 3.04 3.08 10/2000 - 09/2003 1.54 0.32 85.85 77.09 0.19 7.78 2.61 2.16 01 /2001 - 12/2003 2.78 0.41 90.48 77.09 0.79 6.62 3.15 3.47 04/2001 - 03/2004 2.33 0.24 90.71 80.18 1.08 6.75 2.14 2.84 07/2001 - 06/2004 0.99 0.03 83.63 80.18 0.67 6.85 0.95 1.03 10/2001 - 09/2004 0.72 -0.15 85.60 81.88 1.83 4.47 -0.12 1.22 01/2002 - 12/2004 0.00 -0.34 81.15 81.88 1.27 6.31 -1.11 0.04 04/2002 - 03/2005 0.35 -0.22 81.14 79.32 1.26 5.59 -0.45 0.64 07/2002 - 06/2005 0.18 -0.36 81.97 79.42 2.52 3.96 -1.27 0.98 10/2002 - 09/2005 -1.44 -0.87 83.96 97.70 44.61 0.39 -3.51 5.71 01/2003 - 12/2005 -0.48 -0.63 92.48 97.70 37.81 0.44 -1.41 6.30 04/2003 - 03/2006 0.27 -0.62 91.94 -293.74 1,785.23 0.01 -1.38 434.11 07/2003 - 06/2006 -0.75 -0.58 89.78 -293.74 244.25 0.06 -1.25 125.29 10/2003 - 09/2006 -1.18 -0.77 86.79 -293.74 591.46 0.03 -1.89 194.01 Avg. of 17 rolling periods 1.22 0.00 88.19 12.82 159.64 4.71 1.13 47.25 Bogdahn Consulting, LLC. "simplifying your investment decisions" Oppenheimer Capital: All 10/1999 - 09/2006 Cap Equit 3.87 y .. ~ - . • . ~- 0.50 116.47 88.38 2.67 4.37 3.71 7.03 10/1999 - 09/2002 8.86 0.90 158.06 91.16 0.23 8.96 7.43 15.38 01 /2000 - 12/2002 5.31 0.68 128.87 91.16 0.06 9.74 4.92 8.75 04/2000 - 03/2003 4.54 0.56 124.08 92.63 -0.18 11.17 4.05 7.27 07/2000 - 06/2003 2.14 0.27 114.39 100.85 0.26 ' 9.87 2.02 3.24 10/2000- 09/2003 3.59 0.48 125.60 100.85 0.22 9.89 3.33 5.81 01 /2001 - 12/2003 2.42 0.32 _ 115.01 100.85 0.49 8.90 2.31 3.48 04/2001 - 03/2004 2.64 0.34 115.56 101.52 1.06 7.22 2.54 3.62 07/2001 - 06/2004 3.62 0.47 122.62 101.52 0.93 7.66 3.51 5.22 10/2001 - 09/2004 4.22 0.49 116.50 94.05 2.92 4.20 3.94 6.02 01 /2002 - 12/2004 1.72 0.12 101.17 94.05 2.09 4.92 1.11 2.21 04/2002 - 03/2005 2.99 0.38 104.27 87.52 2.00 5.03 2.58 4.42 07/2002 - 06/2005 4.24 0.46 98.69 68.43 6.06 2.37 3.16 8.20 10/2002 - 09/2005 1.35 0.01 96.82 60.76 68.16 0.31 0.14 21.12 01 /2003 - 12/2005 3.29 0.28 104.56 60.76 131.59 0.15 1.71 35.79 04/2003 - 03/2006 5.03 0.35 104.94 -900.06 3,784.88 0.01 2.19 959.05 07/2003 - 06/2006 2.14 0.18 100.51 -900.06 149.29 0.12 1.10 230.44 10/2003 - 09/2006 1.15 -0.01 94.03 -900.06 56.94, 0.30 -0.01 210.43 Avg. of 17 rolling periods 3.49 0.37 113.28 -85.53 247.47 5.34 2.71 90.03 Snow Capital Manageme 10/1999 - 09!2006 nt: All Cap Value .. . • . .• 6.74 0.91 141.59 91.11 3.25 4.68 7.25 12.28 10/1999 - 09/2002 14.04 1.13 193.77 93.50 0.56 8.85 10.33 23.20 01 /2000 - 12/2002 11.92 1.04 173.62 93.50 0.53 9.31 9.18 18.72 04/2000 - 03/2003 8.23 0.81 139.74 92.89 -0.05 11.46 5.58 11.17 07/2000 - 06/2003 5.42 0.73 137.37 106.00 0.46 10.55 4.28 7.60 10/2000 - 09/2003 5.38 0.68 138.44 106.00 0.25 11.29 3.91 7.75 01/2001 - 12/2003 7.43 _ 1.11 150.03 106.00 0.96 9.18 6.74 10.71 04/2001 - 03/2004 6.27 1.09 153.45 113.31 1.49 7.90 6.59 9.80 07/2001 - 06/2004 5.13 0.94 148.06 113.31 0.94 9.27 5.08 8.35 10/2001 - 09/2004 4.79 1.13 144.90 112.39 2.58 5.63 6.21 8.20 01 /2002 - 12/2004 1.72 0.50 124.38 112.39 1.79 6.64 2.72 3.20 04/2002 - 03/2005 2.35 0.56 126.46 109.85 1.49 7.08 3.06 4.20 07/2002 - 06/2005 4.07 0.99 128.53 99.48 4.22, 3.95 5.45 7.67 10/2002 - 09/2005 3.47 1.18 128.15 66.89 224.60 0.12 6.95 58.10 01/2003 - 12/2005 4.23 1.17 131.25 66.89 122.67 0.20 6.74 38.49 04/2003 - 03/2006 3.39 1.09 127.50 -297.51 2,795.18 0.01 6.58 644.93 07/2003 - 06/2006 2.38 0.63 120.61 -297.51 619.71 0.03 3.73 208.17 10/2003 - 09/2006 1.48 0.39 111.95 -297.51 763.22 0.03 2.49 234.91 Avg. of 17 rolling periods 5.39 0.89 139.89 29.40 267.09 5.97 5.62 76.77 Bogdahn Consulting, LLC. "simplifying your investment decisions" =rv ~` ~ < .~ x~~=>>; ~~ 2100 Georgetowne Drive, Suite 400 Sewickley, PA, 15143 CONTACT: Mr. David A. Mathews SNOW CAPITAL MANAGEMENT, LP ALL CAP VALUE EQUITY INVESTMENT PHILOSOPHY - We believe that opportunities are most likely found in places where others are not looking. [f success is defined as beating expectations, then we look where expectations are low. Many companies who have faded from the analysts' radar screens are full of value-added potential. Our success is driven by identifying those companies who stand to benefit by beating expectations. We believe that early recognition of these situations creates opportunities to capture excess return and provide superior long-term performance. As "outside of the box" thinkers, we believe in providing plan sponsors with our best ideas. Each investment is evaluated based on its risk/reward tradeoff and its value-added potential, not on whether or not it conforms to some narrow set of "height & weight" constraints. We believe that plan sponsors are more interested in receiving a reasonable return on their investments rather than adhering to a rigid notion of investment "style correctness". INVESTMENT DECISION-MAKING PROCESS - We focus on stocks that we believe are selling at below their intrinsic value. While all of the stocks that we purchase have been oversold or beaten down for very legitimate reasons, we are able to look beyond the current negative consensus and make our own evaluation as to the prospects for the company going forward. Our screening process employs a proprietary model in evaluating measures of value (relative P/E, tangible book value, free cash flow, depressed historical price percentage change), expectations (earnings and sales growth) and risk (leverage, relative debt levels). This quantitative screen filters the universe down to approximately 150 names. We then perform thorough, bottom-up analysis which undercovers undervalued, out-of--favor companies that have sound balance sheets and solid fundamentals. We then comprise a list of potential "buy" candidates, which includes approximately 80 names. Having a thorough understanding of company-specific risk enables us to take meaningful positions where our convictions are the strongest. A typical portfolio consists of approximately 30-40 small-cap, mid-cap and large-cap stocks, which are generally equally weighted (as a means of risk control). A stock is sold in a client's portfolio under certain conditions, including when: The stock reaches fair valuation and its relative discounts to financial metrics revert to normalized levels. Normalized EPS x Normalized P/E =Target Price [t is necessary to maintain the desired portfolio risk profile TEL: 724-934-5815 FAX: 724-934-5855 PRODUCT ASSETS: $5,000.00 MILLION (e.g. by reducing the weighting of a stock that has outperformed) Balance sheet deterioration necessitates selling the position A fully invested portfolio must make room for a newly uncovered, compelling investment opportunity The value of a stock depreciates 30% relative to the benchmark, based on our average cost to acquire the position (The Enron Rule) We do not deviate from our strategy, which is highly focused on risk control. Our process has served us well for twenty-three years and we see no reason to change this approach PORTFOLIO CONSTRUCTION -Our buy disciplines does not impose any capitalization constraints on the stocks that we utilize. However, we are cognizant of the liquidity and volatility considerations of smaller cap issues and as a means of risk control, micro-cap stocks, if utilized, are limited to one-half of the weight given to other stocks in the portfolio. A typical portfolio consists of approximately 30-40 small-cap, mid-cap and large-cap stocks, which are generally equally weighted (as a means of risk control). A 3-4% cash position is maintained in the portfolios to acquire a security without generating a sale to raise cash if the opportunity arises. Computer models or derivatives are not utilized. The portfolios are monitored on an ongoing basis through monthly reviews and portfolio analysis. KEY INVESTMENT OFFICER: Richard A. Snow Current Position: Chief Investment Officer, 1980 PRESENT Current Firm: Snow Capital Management LP Responsibility: Chief Investment officer Professional Accreditation: Education Graduate: MA -Business Administration Year of Birth: 1957 Phone: 724-934-5800 email: rsnow@snowcapitalmanagement.com Previous Position: - Company: Title: Joshua Schachter Current Position: Portfolio, 2001 -PRESENT Current Firm: Responsibility: Equity Portfolio Manager Professional Accreditation: CFA © 2006Infnrma Investment Solutions, Inc., www.informuis.com ~~:/ ~ rte" ~°. nnu+se~n~m~~~> ~ OPPENHEIMER CAPITAL ALL CAP EQUITY KEY INVESTMENT OFFICER: Louis Goldstein Current Position: Managing Director, 1991 -PRESENT Current Firm: Oppenheimer Capital Responsibility: Equity Portfolio Manager; Research Analyst Professional Accreditation: Phone: email: Previous Position: - Company: Title: FEES AND MINIMUM ACCOUNT: LAST MODIFIED ON: 8/18/2006 © 2006 /nformu Investment Solutions, /nc., www.informuis.com .~..r.~ ~~. ,~ ~ ~. SNOW CAPITAL MANAGEMENT, LP ALL CAP VALUE Education Undergraduate: Allegheny College, B.S. Education Graduate: University of Pittsburgh, MBA Year of Birth: 1978 Phone: 724-934-5800 email: Previous Position: 2000-2001 Company: AG Edwards Title: Investment Analyst FEES AND M[N[MUM ACCOUNT: SEPARATE ACCT: 0.80% on first $IOMM; 0.70% on next $IOMM; 0.60"/0 on balance; Min Acct Size: $2MM; Min Fee: $16,000 WRAP ACCT: 0.50% on a wrap generally; Min Acct Size: $500,000; Min Fee: $2,500 LAST MODIFIED ON: 10/16/2006 ©1006 /nformu Investment Solutions, /nc., www.informuis.com ;/ x. ~ 1 ~. The Gulf Tower, 707 Grant Street Pittsburgh, PA, 15219 CONTACT: Mr. John McCabe TEL: 412-291-5415 FAX: 412-291-5558 PRODUCT ASSETS: $631.97 MILLION EQUITY INVESTMENT PHILOSOPHY - The All Cap Value strategy is based on the belief that superior investment returns can be achieved by employing a contrarian approach to stock investing. As companies' profitability and growth rates tend to converge over time investors tend to extrapolate recent growth rates into the future. Hence, as investors flee underperforming companies and sectors and flock to outperforming ones, investment opportunities unfold. Our objective is to outperform the Russell 3000 Value Index over periods of 5 years while providing attractive risk-adjusted returns through a combination of capital appreciation and dividend income. Our process involves a search for low-expectation, out-of--favor stocks. We look for certain characteristics in stocks such as: low price/earnings ratios, low price book values, low price/sales ratios, low price/cash flow ratios, and above average dividend yields. In addition, we utilize a normalized return analysis including a focus on normalized earnings rather than current earnings and an application of appropriate P/E valuation to determine a price target. Value is added through our disciplined process and team of highly qualified, tenured professionals. By utilizing a disciplined process, we can incorporate risk management through our valuation discipline and exploit market inefficiencies through our fundamental research. INVESTMENT DECISION-MAKING PROCESS - We employ abottom-up investment approach with a research-intensive fundamental process providing the basis for stock selection. Our contrarian approach to stock selection begins with a comprehensive universe screen of approximately 2,400 companies with market capitalization > $300 million. Next, the team conducts value screens for statistically cheap, low-expectation, out-of--favor stocks, characterized by low price/earnings ratios, low price book values, low price/sales ratios and above average dividend yields to narrow the list to approximately 1,000 stocks. Next, based upon an assessment of growth potential, risk and historical valuations, we determine an appropriate price/eamings ratio and multiply that by normalized eamings to yield a list of approximately 400 undervalued stocks. Through further fundamental analysis and portfolio considerations, a portfolio of 80-140 stocks is constructed. Risk is actively managed by monitoring holdings and sector weightings to ensure appropriate portfolio diversification and risk parameters while remaining fully invested. Our sell discipline is defined FIFTH THIRD ASSET MANAGEMENT, INC. ALL CAP VALUE by factors such as the stock performs well and either reaches or approaches its price target, when a more attractive stock is identified, and financial reporting issues. A lower price target results from reassessment of normal earnings or attainable price/eamings ratio. We manage all accounts in the strategy to a model account. When a decision is made by the team to buy or sell a position, the model account is changed. Changes are implemented on a timely basis in all accounts tied to the model through our portfolio management system. PORTFOLIO CONSTRUCTION - All Cap Value portfolios are fully diversified, constructed of 80-140 stocks representing value characteristics such as low price/eamings ratios, low price book values, low price/sales ratios and above average dividend yields. The team manages risk by maintaining holdings and sector weightings to the following portfolio guidelines: The maximum sector weight is the lesser of: 1) three times the weight of the sector in the Russell 3000 Value or 2) the weight of the sector in the Russell 3000 Value plus 10%. The minimum sector weight is one-third of the weight of the sector in the Russell 3000 Value. Individual holdings are limited to 3% of the portfolio. Risk is also managed by monitoring beta, active risk, and coefficient of determination and Barra risk index exposures. KEY INVESTMENT OFFICER: TEAM APPROACH Mr. Peter Klein Current Position: Senior Portfolio Manager, 2001 PRESENT Current Firm: Fifth Third Asset Management, Inc. Responsibility: Equity Portfolio Manager Professional Accreditation: CFA Education Undergraduate: John Carroll University, BA Education Graduate: Cleveland State University, MBA Year Entered Industry: 1978 Phone: 216-274-5384 email: pete.klein@53.com Previous Position: 1993-2001 Company: Maxus Investment Group Title: Portfolio Manager FEES AND MINIMUM ACCOUNT: O2006InformulnvestmentSolutions,/nc., www.informuis.com x; -i ^„~r t`~ M"' . i ~: ~; ..IIIPBmwf ~~ J ~; FIFTH THIRD ASSET MANAGEMENT, INC. ALL CAP VALUE SEPARATE ACCT: First $25MM, 0.80%; Next $25M, 0.70%; Thereafter 0.60%; Min Acct Size: $2MM; Min Fee: $20,000 MUTUAL FUND: Fifth Third Multi Cap Value Fund; Min Acct Sizc: $1,000; Min Fee: N/A WRAP ACCT: The fees charged depend on which Sponsor the product is being offered through. Through Fifth Third Passageway, fees are 45 bps for the first $500,000 and 40 bps for assets after that amount.; Min Acct Size: $100,000; Min Fee: 45 bps Other: Social Screening additional 10% fee. LAST MODIFIED ON: 10/13/2006 2006 /nforma /nvestment Solutions, /nc., www.informais.com ~~ .°.,; ~~ ~ :~.~. ~, `,x, `~. 1345 Avenue of the Americas, 48th Fl New York, NY, l 0105-4800 CONTACT: Ms. Kathleen Weldon TEL: 212-739-3038 FAX: 212-739-3947 PRODUCT ASSETS: $536.20 MILLION EQUITY INVESTMENT PHILOSOPHY - Oppenheimer Capital seeks to deliver outperformance through investment in stocks that are selling at a discount to intrinsic value. We believe that over a market cycle, a stock's price will converge with its true worth. Through superior fundamental analysis, our objective is to capture the short-term mispricings, in the view that consistent investment in undervalued stocks is the most effective way to outperform. All Cap Equity is an equity strategy managed since 1989 by Oppenheimer Capital for long-term appreciation through investment in companies in all capitalization tiers. The portfolio seeks to outperform the Russell 3000 Index by 2%-4% annually over a full market cycle through fundamental stock analysis and active portfolio management. [n the long-term, portfolios have acore-orientation with a value bias. Over shorter term periods, reflecting the bottom-up nature of the strategy, the portfolio can be value or growth biased to some degree. INVESTMENT DECISION-MAKING PROCESS - The goal of our research process is to develop differentiated insights about a stock's true worth through superior analysis of its fundamentals. The research universe includes stocks covered by our Large Cap and Mid/Small Cap teams. Stocks are refined to exclude companies of insufficient quality or prohibitively high valuation. From the remaining universe, analysts typically meet with company management and third-party sources such as suppliers, customers and competitors; analyze financial statements; and evaluate industry trends. Analyst effort is concentrated on points of divergence from widely available research, working to uncover evidence that supports or disproves their thesis. Finn-wide, analysts are organized into seven global sector research teams, which serve as the foram for peer review and discussion of stock ideas. Upon identifying a compelling investment opportunity, the analyst prepares a clear investment thesis in writing that details the rationale for investment and the expected future developments that can be used to assess whether the thesis is progressing successfully. The stock is then presented to the sector research team, which is headed by a senior investment professional, for inclusion on the Recommended List. If the stock is approved, the analyst ascribes a target price, signifying his or her intrinsic value estimate, and a rating from 1 to 3, signifying the stock's current risk-adjusted upside potential and the analyst's level of conviction that the OPPENHEIMER CAPITAL ALL CAP EQUITY thesis will be realized. To create a truly diversified portfolio of stocks from all capitalization ranges, the All Cap Equity portfolio manager incorporates research from the Large Cap and Small/Mid Cap investment teams when making stock selection decisions. The criteria the portfolio manager uses when constructing portfolios are their conviction level about an investment thesis, the degree of intrinsic value discount, and risk control considerations. We aim to capture the widest individual discounts to intrinsic value available in the market and aggregate them into an efficient, risk-controlled portfolio. Our sell discipline entails a review process that considers whether we would buy the stock today if we did not already own it. A sell review will be triggered (a) if the stock's price approaches full intrinsic value; (b) in anticipation of changes to the company's fundamentals or risk profile; or (c) if its price moves sharply in either direction. A stock may also be sold as a more attractive investment opportunity becomes available. Trading is conducted by our four equity traders who manage trading activity for all the firm's equity accounts. Trades are placed by the portfolio manager into our trading systems and orders are consolidated across accounts. Portfolio guideline compliance is reviewed on a pre- and post-trade basis in addition to a daily review by our compliance department. PORTFOLIO CONSTRUCTION -Stocks are selected on a bottom-up basis from the Recommended List and combined into fully diversified portfolios. Because we attempt to generate alpha primarily through stock selection and only residually through sector weightings, we employ guideline benchmark parameters of plus or minus IS percentage points from each sector weighting, absent an intentional decision to diverge. This guideline ensures that the level of benchmark risk we take is the deliberate result of our insights about individual stocks. To enhance our risk control, we apply a quantitative risk measurement overlay to ensure that metrics such as tracking error and marginal contribution to risk are appropriate. Using Northfield's factor model software, we monitor risk-adjusted performance measures to ensure a full understanding of the risks we are taking and how well we expect to be compensated for taking them. The resulting portfolio comprises approximately 75 stocks. The minimum size for a position in an All Cap Equity portfolio is 1%, and the maximum is 5% at cost and 8% at market values. Portfolios are run fully invested, with a maximum average cash level of 5%. ©10067nforma Investment Solutions, /nc., www.informuis.com MESIROW FINANCIAL INVESTMENT MGMT. ALL CAP VALUE EQUITY 350 N. Clark TEL: 212-480-3633 Chicago, IL, 60610 FAX: 212-425-5617 CONTACT: Ms. Jill Rasinski PRODUCT ASSETS: $113.10 MILLION EQUITY INVESTMENT PHILOSOPHY - We seek companies whose shares trade at a significant discount to intrinsic value and which have an identifiable and LAST MODIFIED ON: 11/3/2006 measurable catalyst to unlock the value that we discern. Our investment horizon is 3-5 years. The All Cap Value philosophy allows us to seek the best values wherever we find them (capitalizations). INVESTMENT DECISION-MAKING PROCESS - Our Focus List contains 50-70 securities including current portfolio holdings. Quantitative screens focus upon enterprise value to cash flow, profitability measures, financial stability and disciplined deployment of capital to produce 25-50 additional candidates which are further reduced through preliminary fundamental work. We then perform detailed due diligence including evaluation of financials, proxies, SEC filings, and analysis of the company and industry which can include customers, suppliers, management and other contacts. The Lead portfolio manager makes the ultimate decision to add a company to the Focus List. Weekly Investment Policy and Research meetings of all analysts and portfolio managers, and ongoing dialogue, reports and informal meetings serve to crystallize focus. Buy/sell targets are set before purchase and re-set as dictated by ongoing revaluation. 85% of research is in-house, resulting with input from Baseline, Bloomberg Reuters Knowledge, Multex, Ford and Value Line. Companies are sold when the share price and value converge or when the catalyst for value enhancement fails. Sales are tax-managed where appropriate. PORTFOLIO CONSTRUCTION - Portfolios hold 50-70 equally weighted positions. KEY INVESTMENT OFFICER: TEAM APPROACH FEES AND MINIMUM ACCOUNT: SEPARATE ACCT: Our standard fee schedule is 1.00% on the first $ I OMM, 0.90% on next $ l SMM and 0.80% on balance.; Min Acct Size: $SMM; Min Fee: $50,000 COMMINGLED FUND: ;Min Acct Size: $250,000; Min Fee: $3,750 ~ 20061nformu Investment Solutions, Inc., www.informuis.rom RFP for Investment Management Proposals The City of Winter Springs, Florida Employees' Pension Plan is seeking investment management proposals for the following mandates: All Cap Growth S 3.4 million All Cap Value $ 3.4 million International $ 1.3 million Core Fixed Income $ 4.0 million Full-sorvice custody provider. Bogdahn Consulting is handling the search process. To request an RFP, please contact celeste~boadahnconsulting com. 15 Lines $585 Please sign below to approve the above ad for publication in the 10-30-06 issue of Pensions & Investments. 15 Ine Ad ff .. ' X ~~1~,. City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search Lateef Investment Management All-Cap Growthl Greenbrae, CAI 321 $3.40. $2.70 1 Equity, Balanced 100%employee~ Yes Noy No Snow Capital Management All-Cap Value Equity] Sewickly, PAs 15i $5.40 ~ $5.00 1 Equity 100% employees Yes1 Noy No Galliard Capital Management ; Core ("Broad Market") Fixed Incomes Minneapolis, MNs 11 s $21.40 s $3.20 s Fixeds Subsidiarys Yess Nos No Agincourt Capital Management Core Fixed Incomes Richmond, VAs 7; $3.00 s $1.80 s Fixeds 100%employees Nos No; No MBIA Asset Management Core Fixed Incomes Armonk, NYs 13. $58.30 s $0.07 s Fixeds Subsidiary Nos Nos Yes Argent Capital Large Cap Growth Equity St.Louis, MOs Ss $0.60 s $0.30 s Equity, Balanceds 100%employee; Nos No; No Renaissance Investment Management Large Cap Growth Equityl Cincinatti, OH s 28. $5.30 s $3.80 s Boths 30% employees Yess Nos No Rigel Capital Large Cap Growth Equitys Seattle, WAI 81 $2.00 1 $1.80 s Equity, Balanceds 75% employees Yess Nos No Dana Investment Advisors Large Cap Value Equitys Brookfield, Wls 27; $2.90 s $0.50 s Boths 100% employees Yess Nos No Pacific Income Advisors Market Duration Fixed I Santa Monica, CAs 20s $4.30 i $0.60 i Fixeds 100% employees Nos Nos No January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search LateeflnvestmentManagement Alt-CapGrowthl Greenbrae,CA1 321 $3.40 ~ $2.70 ~ Equity, Balancedl 100%employeel Yes1 Not No Snow CapitalManagemeM All-Cap ValueEquity~ Sewickly,PA~ 15~ $5.401 $5.001 Equityl 100%employeel Yesl Nol No Galliard Capital Management ;Core ("Broad Market") Fixed Income; Minneapolis, MN I 11 ; $21.40 ; $3.20 ; Fixed; Subsidiary; Yes; No; No Agincourt Capital Management Core Fixed Income; Richmond, VAI 7; $3.00 ; $1.80 ; Fixed; 100% employee; No; No; No MBIA Asset Management Core Fixed Income; Armonk, NY; 13; $58.30 ; $0.07 ; Fixed; Subsidiary No; No; Yes Argent Capital Large Cap Growth Equityl St.Louis, MOt 81 $0.60 ; $0.30 ; Equity, Balancedl 100%employeel Nol Nol No Renaissance Investment Management Large Cap Growth Equityl Cincinatti, OHI 281 $5.30 I $3.80 I Bothl 30%employeel Yes Nol No Rigel Capital Large Cap Growth Equityl Seattle, WAI 81 $2.00 I $1.80 I Equity, Balancedl 75% employeel Yesl Nol No DanalnvestmentAdvisors Large Cap Value Equityl Brookfield,Wll 271 $2.901 $0.501 Bothl 100%employeel Yesl Nol No Pacific Income Advisors Market Duration Fixed I Santa Monica, CAI 201 $4.30 I $0.60 I Fixed; 100°/ employeel Nol Nol No January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search Lateef Investment Management All-Cap Growth! Greenbrae, CAI 321 $3.40 ; $2.70 1 Equity, Balanced 1 100% employee) Yes1 Nod No Snow Capital Management All-Cap Value Equity Sewickly, PA. 15. $5.40 ~ $5.00 ~ Equity 100% employee Yes. Nol No Galliard Capital Management ;Core ("Broad Market") Fixed Income; Minneapolis, MN; 11 ; $21.40 ; $3.20 ; Fixed; Subsidiary; Yes; No; No Agincourt Capital Management Core Fixed Income; Richmond, VA; 7; $3.00 ; $1.80 ; Fixed; 100% employee; No; No; No MBIA Asset Management Core Fixed Income; Armonk, NY; 13; $58.30 ; $0.07 ; Fixed; Subsidiary No; No; Yes Argent Capital Large Cap Growth Equity St.Louis, MO; 8. $0.60 ~ $0.30. Equity, Balanced) 100 % employee) No. No. No Renaissance Investment Management Large Cap Growth Equity) Cincinatti, OH. 28. $5.30. $3.80 ~ Both. 30 % employee Yes. No. No Rigel Capital Large Cap Growth Equity; Seattle, WAj 8; $2.00 j $1.80 ; Equity, Balanced; 75% employee; Yes; No; No Dana Investment Advisors Large Cap Value Equity; Brookfield, WI; 27; $2.90 ; $0.50 ; Both; 100% employee; Yes; No; No Pacific Income Advisors Market Duration Fixed ; Santa Monica, CA; 20j $4.30 ; $0.60 ; Fixed; 100% employee; No; No; No January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search Lateef Investment Management All-Cap Growth) Greenbrae, CAl 321 $3.40 ; $2.70 1 Equity, Balanced) 100% employee) Yest Not No Snow Capital Management All-Cap Value Equity Sewickly, PA. 15. $5.40. $5.00 ~ Equityj 100 % employee Yes. No. No Galliard Capital Management ;Core ("Broad Market") Fixed Income; Minneapolis, MN; 11 ; $21.40 ; $3.20 ; Fixed; Subsidiary; Yes No; No Agincourt Capital Management Core Fixed Income; Richmond, VA; 7; $3.00 ; $1.80 ; Fixed; 100% employee; No; No; No MBIAAsset Management Core Fixed Income; Armonk, NY; 13; $58.30 ; $0.07 ; Fixed; Subsidiary; No; No; Yes Argent Capital Large Cap Growth Equity St.Louis, MO. 8. $0.60 ~ $0.30 ; Equity, Balanced) 100%employee~ No. Nol No Renaissance Investment Management Large Cap Grow[h Equity) Cincinatti, OH. 28. $5.30. $3.80 ~ Botha 30 % employee) Yes Nod No Rigel Capital Large Cap Growth Equity; Seattle, WA; 8; $2.00 ; $1.80 ~ Equity, Balanced; 75% employee; Yes; No; No Dana Investment Advisors Large Cap Value Equity; Brookfield, WI; 27; $2.90 ; $0.50 ; Both; 100 % employee; Yes No; No Pacific Income Advisors Market Duration Fixed j Santa Monica, CA; 20j $4.30 ; $0.60 ; Fixed; 100%employee; No; No; No January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search LateeftnvestmentManagement All-CapGrowthi Greenbrae,CA~ 32~ $3.40; $2.70; Equity,Balanced~ 100%employeel Yes Noy No Snow Capital Management All-Cap Value Equityl Sewickly, PAt 15l $5.40 ~ $5.00 l Equityl 100% employee Yesl Nol No Galliard Capital Management ;Core ("Broad Market") Fixed Income; Minneapolis, MNl 11 l $21.40 ; $3.20 ; Fixed; Subsidiary; Yes; No; No Agincourt Capital Management Core Fixed Income; Richmond, VAl 7; $3.00 ; $1.80 ; Fixed; 100 % employee; No; No; No MBIA Asset Management Core Fixed Income; Armonk, NYl 13; $58.30 ; $0.07 ; Fixed; Subsidiary; No; No; Yes Argent Capital Large Cap Growth Equity) St.Louis, MOI 8~ $0.60 ~ $0.30 ~ Equity, Balanced 100 % employee No; Noy No Renaissance Investment Management Large Cap Growth Equityl Cincinatti, OH l 28l $5.30 ~ $3.80 l Bothl 30 % employeel Yesl Nol No Rigel Capital Large Cap Growth Equityl Seattle, WAl 8l $2.00 l $1.80 l Equity, Balanced) 75%employeel Yesl Nol No Dana Investment Advisors Large Cap Value Equityl Brookfield, Wll 27l $2.90 l $0.50 l Bothl 100%employeel Yesl Nol No Pacific Income Advisors Market Duration Fixed ; Santa Monica, CAl 20; $4.30 l $0.60 l Fixed l 100% employee; Nol No; No January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search process Lateef Investment Management All-Cap Growthl Greenbrae, CA Snow Capital Management All-Cap Value Equity Sewickly, PA Gatliard Capital Management ;Core ("Broad Market") Fixed Income; Minneapolis, MN Agincourt Capital Management Core Fixed Income; Richmond, VA MBIA Asset Management Core Fixed Incomes Armonk, NY Argent Capital Large Cap Growth Equityl St.Louis, MO Renaissance Investment Management Large Cap Grow[h Equity] Cincinatti, OH Rigel Capital Large Cap Growth Equity Seattle, WA Dana Investment Advisors Large Cap Value Equity; Brookfield, WI Pacific Income Advisors Market Duration Fixed ! Santa Monica, CA 32. $3.40 I $2.70. Equity, Balancedl 100%employeel Yes 15i $5.40 ~ $5.00 ~ Equityl 100%employee~ Yes 11; $21.40 ; $3.20 ; Fixed; Subsidiary Yes 7; $3.00 ; $1.80 ; Fixed; 100%employee; No 13~ $58.30 ~ $0.07 ~ Fixed; Subsidiary No 8~ $0.60 ; $0.30 ; Equity, Balanced 100%employeel No 281 $5.30 ~ $3.80 ~ Botha 30%employeel Yes 8 $2.00 ~ $1.801 Equity, Balanced; 75%employeel Yes 27; $2.90 ; $0.50 ; Both; 100 % employee; Yes 20i $4.30 I $0.60 ; Fixed; 100°/ employee; No No No No No No No No No No; January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search Lateef Investment Management All-Cap Growth Greenbrae, CAI 321 $3.40 1 $2.70 I Equity, Balancedl 100% employeel Yesl Noj No Snow Capital Management All-Cap Value Equityl Sewickly, PAl 15 $5.40 ~ $5.00 ~ Equityl 100 % employee Yesl Nol No Galliard Capital Management ;Core ("Broad Market") Fixed Income; Minneapolis, MN l 11 ; $21.40 ; $3.20 ; Fixed; Subsidiary; Yes; Nol No Agincourt Capital Management Core Fixed Income; Richmond, VAl 7; $3.00 ; $1.80 ; Fixed; 100 % employee; No; No; No MBIA Asset Management Core Fixed Income; Armonk, NYl 13l $58.30 ; $0.07 ; Fixed; Subsidiary No; No; Yes Argent Capital Large Cap Growth Equity St.Louis, MOl 81 $0.60 ~ $0.30 ~ Equity, Balancedl 100% employeel Nol Nol No Renaissance Investment Management Large Cap Growth Equityl Cincinatti, OHl 28l $5.30 l $3.80 l Bothl 30% employeel Yesl Nol No Rigel Capital Large Cap Growth Equityl Seattle, WAI 8l $2.00 I $1.80 I Equity, Balanced; 75% employeel Yesl Nol No DanalnvestmentAdvisors Large Cap Value Equityl Brookfield,Wll 27l $2.90; $0.501 Bothl 100%employeel Yesl Nol No Pacific Income Advisors Market Duration Fixed l Santa Monica, CAI 201 $4.30 ; $0.60 l Fixed i 100% employeel Nol Nol No January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan Firm that we like and that we added in the search Lateef Investment Management All-Cap Growth) Greenbrae, CA1 321 $3.40 1 $2.70 1 Equity, Balancedl 100% employeel Yes1 No Snow Capital Management All-Cap Value Equity) Sewickly, PAI 151 $5.40 I $5.00 ~ Equity 100% employeel Yesl No Galliard Capital Management I Core ("Broad Market") Fixed Income) Minneapolis, MNI 1t I $21.40 I $3.20 ; Fixed) Subsidiary) Yesl No Agincourt Capital Management Core Fixed Income) Richmond, VAI 7l $3.00 I $1.80 I Fixed) 100% employeel Nol No MBIA Asset Management Core Fixed Income) Armonk, NYI 13l $58.30 I $0.07 I Fixed) Subsidiary) Nol No Argent Capital Large Cap Growth Equity St.LOUis, MOI 8l $0.60 ! $0.30 I Equity, Balancedl 100%employeel Nol No Renaissance Investment Management Large Cap Growth Equity) Cincinatti, OHI 28l $5.30 I $3.80 I Bothl 30% employeel Yesl No Rigel Capital Large Cap Growth Equity; Seattle, WAI 8 $2.00 I $1.80 I Equity, Balancedl 75% employeel Yesl No Dana Investment Advisors Large Cap Value Equity? Brookfield, WI I 27l $2.90 I $0.50 ; Both; 100 % employeel Yesl No Pacific Income Advisors Market Duration Fixed ; Santa Monica, CAI 20l $4.30 ! $0.60 ; Fixed; 100%employeel Nol No January 4, 2007 Bogdahn Consulting, LLC '; ~. Zevenbergen Capital (partnership w. Tmsco Capital) ~ Aggressive Growth Equity 1 ~2 Winslow All Cap Equity; Balanced 3 Oppenheimer Capital All Cap Equity; INTL 4 Mitchell Capital Management All Cap Growth 5 Robert Bender and Associates All Cap Growth All Cap Growth ("Opportunistic 6 DG Capital Management Growth"J 7 Advanced Investment Partners All-Cap 8 DeRoy & Devereaux All-Cap Core Value 9 Biondo Investment Advisors All-Cap Growth 10 Hellman, Jordan All-Cap Growth 11 Seneca Capital All-Cap Growth 12 Fifth Third All-Cap Value 13 Mesirow Financial Investment Mgmt. All-Cap Value 14 Howland and Associates Balanced 15 ICC Capital Balanced 16 Pinnacle Balanced 17 Sawgrass Asset Management Balanced 18 AmSouth Asset Management Core Fixed Income 19 Bradford & Marzec Core Fixed Income 20 Brandes Core Fixed Income 21 Dwight Asset Management Core Fixed Income 22 Earnest Partners Core Fixed Income 23 Financial Management Advisors Core Fixed Income 24 Hartford Investment Mgmt. Core Fixed Income 25 Holland Capital Management Core Fixed Income 26 ING Core Fixed Income 27 Orleans Capital Management Core Fixed Income 28 Pacific Income Advisors Core Fixed Income 29 Sage Advisory Services, Ltd. Co. Core Fixed Income 30 HGK Asset Management Core Fixed; All-Value 31 Goldman Sachs Asset Management Did Not Disclose 32 WB Capital Management Did Not Disclose 33 INVESCO Diversified Core Fixed 34 Integrity Fixed Income Management Fixed Income 35 Julius Baer Fixed Income 36 MPI Investment Management Fixed Income 37 DePrince, Race 8 Zollo International 38 Freedom Capital International 39 Wentworth, Hauser & Violich International 40 Hansberger Global Investors, Inc. International equity 41 Bull Group Advisors, Ltd. Large Cap Growth 42 Riverplace Capital Management Large Cap Growth 43 Invetment Counselors of Maryland Large Cap Value 44 Brandywine Global Investment Mgmt. Lg Cap Value; Intl. 45 Munder Capital Management Multi-Cap Growth 46 Principal Global Multi-Sector Fixed; International 47 Boston Partners Premium Equity 48 Hanseatic Small Growth 49 GNI Capital City of Winter Springs Employees' Pension Plan Seattle,WAl 191 $1.59 Beachwood, OHI 14; $0.34 New York, NYI 371 $22.00 Kansas City, MO1 19l $0.40 Pasadena, CAI 34l $0.20 Boston, MAI 10; $2.00 Safety Harbor, FL1, 101 $1.70 Southfield, MI I 41 $0.50 Milford, PAI 151 $0.40 Boston, MAI 28; $0.40 San Francisco, CAI 171 $11.70 Cincinatti, OH ~ 21 ~ $21.00 Chicago, ILI 68l $20.00 Tampa, FLI 141 $0.10 Odando, FLI 11 j $2.70 Chicago,ILI 5; $0.13 Jacksonville Beach, FL1, 81 $1.20 Birmingham, ALI 34l $4.20 Los Angeles, CAI 221 $4.20 San Diego, CAI 32; $109.40 Budington, VTI 23; $57.00 Atlanta, GAI 171 $18.90 Los Angeles, CAI 21 ~ $1.40 Hartford, CTI 10; $125.90 Chicago,ILI 15; $2.60 Hartford, CTI 33; $190.00 New Odeans, LAI 151 $2.00 Santa Monica,CA1 20l $4.30 Austin, TXI 10l $5.00 Jersey City, NJ 1 231 $3.20 New York, NYI 171 $549.00 West Des Moines, IA 24 $4.20 Atlanta, GA Odando,FL New York, NV Hinsdale, IL Winter Park, FL Boston, MA San Francisco, CA Fort Lauderdale, FL Cincinatti, OH Jacksonville, FL Baltimore, MD Philadelphia, PA Birmingham, MI Des Moines, IA Boston, MA Albuquerque, NM Greenville, SC $1.45 $0.20 $1.20 $0.18 $0.40 $0.40 $0.04 $0.11 $0.44 $0.35 $0.13 $1.00 Both Equity Equity Both Both Both Balanced Both Both Both Both Fixed Both Fixed $0.40 $0.07 $0.24 $1.10 $0.60 35; $240.30 2l $0.10 1 $0.10 1 23l $45.201 $0.401 201 $0.201 $0.071 111 $5.10 I $0.91 1 761 $2.30 1 691 $7.931 $3.901 121 $8.701 Intl 111 $0.68 1 81 $0.20 1 $0.01 I 341 $2.571 $0.301 201 $34.80 l 211 $42.20 ~ $0.04 651 $159.00 1 111 $11.301 $3.301 29l $0.15 1 9l $0.20 1 , Both Both Both Both Both Both Fixed Both Both Partnership (55%Truscoa Noy $5.0 Founder and his family No; $1.0 Allianz inv. arm) Nol $75.0 100% employee Nol $1.0 One owner; No; $1.0 One owner; No; $1.0 25%employeel Noy $75.0 100%employeel Nol $1.0 100% employee; No; $5.0 100%employeel No; self-insures Subsidiary; No; $40.0 Subsidiary Noy $75.0 Subsidiary) Nol $10.0 One owner) Not $2.0 100% employee; No; $5.0 75.8% employee; No; $0.2 100%employee Nol $5.0 Subsidiary Nol $25.0 100%employeel Not $10.0 100% employee; No; $25.0 Subsidiary; No; $40.0 100% employeel Nol $15.0 85%employee] No; $2.0 Subsidiary; No; $5.0 100 % employee; No; $5.0 Subsidiary; No; $50.0 100% employeel Nol $5.0 100% employeel Nol $5.0 100%employeel Nol $5.0 100%employeel Nol $10.0 Subsidiary Not $25.0 Subsidiary) Not $2.0 Subsidiary) Nol $20.0 100% employeel Nol $1.0 Subsidiary Nol $20.0 100% employeel Nol Onreques 100% employeel Nol $15.0 86% employee(14i1 retired employee)1 Nol $10.0 Subsidiary Nol $10.0 100%employeel Noi $10.0 100 % employeel No I $0.5 100% employeel Nol $1.0 Subsidiary Nol $5.0 Subsidiary) Nol $100.0 12.9% employeel Nol $55.0 Subsidiary Not $25.0 Subsidiary) Not $42.0 78%employeel Nol $5.0 100% employeel Nol $0.5 Yes N Yes Yes No No No No No Yes No Yes Yes January 4, 2007 Bogdahn Consulting, LLC City of Winter Springs Employees' Pension Plan 1 Zevenbergen Capital (partnership w. Trusco Capital) ~ 2 Winslow 3 Oppenheimer Capital 4 Mitchell Capital Management 5 Robert Bender and Associates 6 DG Capital Management 7 Advanced Investment Partners 8 DeRoy & Devereaux 9 Biondo Investment Advisors 10 Hellman, Jordan 11 Seneca Capital 12 Fifth Third 13 Mesirow Financial Investment Mgmt. 14 Howland and Associates 15 ICC Capital 16 Pinnacle 17 Sawgrass Asset Management 18 AmSouth Asset Management 19 Bradford 8 Marzec 20 Brandes 21 Dwight Asset Management 22 Earnest Partners 23 Financial Management Advisors 24 Hartford Investment Mgmt. 25 Holland Capital Management 26 ING 27 Orleans Capital Management 28 Pacific Income Advisors 29 Sage Advisory Services, Ltd. Co. 30 HGK Asset Management 31 Goldman Sachs Asset Management 32 WB Capital Management 33 INVESCO 34 Integrity Fixed Income Management 35 Julius Baer 36 MPI Investment Management 37 DePrince, Race 8 Zollo 38 Freedom Capital 39 Wentworth, Hauser & Violich 40 Hansberger Globallnvestors,lnc. 41 Bull Group Advisors, Ltd. 42 Riverplace Capital Management 43 Invetment Counselors of Maryland 44 Brandywine Global Investment Mgmt. 45 Munder Capital Management 46 principal Global 47 Boston Partners 48 Hanseatic 49 GNI Capital No No Yes N Ye N N N N N N N N N N N N N Ye N N N N N N N N N N N N N N N N N Nol Yesl Yes No; Yes. Yes Noi Yes. Yes Not Yes. Yes Nol Yesl Yes Na; Yes; Yes No. Yes. Yes No. Yes. Yes No; Yesl Yes No; Yes' Yes No; Yes; Yes No. Yes. Yes No; Yes. Yes Nol Yesl Yes Noj Yes Yes No; Yes; Yes No. Yes. Yes Yes. Yes. Yes Nol Yesl Yes Nol Yes; Yes No; Yes; Yes to due mutual Nol Nol No /und o/ienng No. Yesl Yes Yes; Yes; Yes No; Yes; Yes No. Yes; Yes No. Yes. Yes Nol Yesl Yes Nol Yesl Yes No; Yes; Yes to due mutual NOI NOI NO /und oflenng No. Yes Yes due to commingled Yes! Yes! Depends venicle No' Yes; Yes No. Yes. Yes Yes. Yesl Yes No; Yes; Yes No. Yes. Yes No. Yes. Yes No. Yes. Yes Nol Yesl Yes No; Yes; Yes No; Yes; Yes No. Yes. Yes No. Yes; Yes Nol Yes. Yes Yesl Yesl Yes No; Yes; Yes No; Yes. No January 4, 2007 Bogdahn Consulting, LLC