HomeMy WebLinkAbout2007 01 31 Document Given To Board Members On 01/25/07 For Regular 302- Fifth Third Asset Management, Inc. (FTAM)Date: January 31, 2007
THE FOLLOWING DOCUMENT WAS
GIVEN TO THE BOARD OF TRUSTEE
MEMBERS ON JANUARY 25, 2007
REGARDING REGULAR AGENDA
ITEM 3 02.
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FTAM-fC 0306
A Presentation for Investment
Management Services
City ~~f Winter Springs
Empl~~yees' Pensi~~n Syster~n
~-(11111f1 ~~U~lftf'f ~OO(~
I ur In~liluliunal Im~~tilnr~ (~nl~
Prescntc~d By:
I'i~li~r I~I~•in, (~I;A, ti~~niur I'i~rlliiliu ~1.in.it;~~r, V.ilu~~ Slr,~l~~i~ii•s
(~urli> tilu~dr~. I ~1ir~~rl~n~, I'ulii~ I un~l~
Kinilir~rh f\ulli~ni~~ti. tirni~~r K~~Lili~intihil~ ~11.ui.~,~ri
(~~~i~/r'i~/.~~
Inir~~~lii~li~~n
ONF
In~~f~s~nx~i~l I'Itil~~~.~~~~l~v ~~ I'r~x~~~~
TWO
( ~<~,ii~~~~~~il~~ Slr~i~lur~~
THREE
~~(`I"~(>Illl~lll(('
FOUR
S~imn~,~r~~
FIVE
~~~~~~~~n~lit
SIX
• ~!//`111//('//U/I
^ ^ ^
Fifth Third Asset Management, Inc.
1~scls h~~ s(vlt~ ;i~ ~.t l" ; I r't ii
R,~al Firm .~~si~ls s '1.t1 h
• Established as an SEC-registered investment advisor-
^ Indirect, wholly-owned subsidiary of Fifth Third Bancorp,
founded in 1 ~i5~i n, ~ •~
^ ,A stable, cohesive teem of investment professionals
whose diverse back~rorrnds and experience broaden the .._. -
firm's investment vision
^ Headquartered in Cincinnati, Of-i with offices in
Cleveland, OH, Pittsburgh, PA, Grand Rapids, h11,
Minneapolis, MN and New Yorl<, NY
^ v,,i~~~~ s~~.- i,
^ c,~~~, `hl r~ i~
~ Ou~uilil.iln~ ~IJi~
^ i ~il,~•~~ v
Focus, Teamwork. Performance.
( ~irr•~iriir r~rr~ir'-s' rr~~~rr~ ri-ti- /r~ rr~i~ii r~iii• iir/r r•r'•ti l-s rr~i/~ /~~!-sr -r f r~iii• r'~r ii/-~ .
Focus
We <ue a ce~llecti~~n ~~f ~~r~~if~~si~~r~~~l~ witl~i tiE~E~cific ~~rf~~ls ~>f e~~~eilise, each f~~c~isecl ~~n e~nh~~nc ink; thf>
duality ~~f ~~ur ~~r~xlucts fvr ~~~ir client
Teamwork
~_)Ur lentil E'f1VlfOt1171P111 l~Ontil511n:~ t)~ management, InVetitmenl anC~ (~~Ielll ref"VICe teams ~~I(1VIC~eS Unll~'
and c~~nsi~lencv f~~r ~~ur cliE~n(5
Performance
i\~ a ~x~rf~~rn~ance-driven iirrn, t~tir acc~~nnlahility ~tructtne ~lirt~ctly relates F~er~ru~al and firm g~~al~ Lvi1h
the sttcces~ tai each client relaliunshi~~
"L
Organizational Structure
~i~ oI 1 ~'/_~ ~/U(,
E. Keith Wirtz, CFA
i'r~~~~i~l~~n( ~~ (~l~i~~l~ln~~~~(i>>~~n1 Olei<cr
_.
Investments Administration Sales Marketing
GrowlhTFdm TradinK In Ir~,ull ;~1c~inlm~~ I> I~~.mi .'~I~~mh~~r~
IO Ir,un h1~~nil>~~r~ t; I~~,~m l~k~nilx~r,
\linn<~,il~~~li~, ~~1N
1-w~~simenl Opcralion.~
(~orc~ 7<<<~m '(~ i~~,un ,'~1~~n~l~r~r~
~~ i~~,uii M~~nilx~r;
( in~~inii,~ti. ~ 11 I
V-luc~ Tram
I(1 I~~.un ;11~~ml~i~r~
(~I~~~.~~I,nxl. ~ ~I I
Quan(i(alivc~ Tc<am
~l I~~,un ;At~~nilrr'r°.
(I~~~~~I,in~L OI I
TixE~-l In< o-n-< T-<d-n
I- I~~,un ;~1~~iiil,E~r~
(~in~ iiui,ili, OI I
~r,uu l I~,~l iii 1~,, i~ 11
Client Service
I~~,nii '~I~~ni(x,r~
3
•
•
•
•
`/~/r~~~<~ic'/i~~ii
Institutional Product Offering
E(~llily
VALUE
I ,~~~,~~ ~~,~i~ V,~I~~~'
\II c ,~I~ ~',tlu~'
hlicl (~,ili A',ilu~~
~n~,ill (_,~li V',~liir,
~titi~ rn ~ ~,~I~ V',iliir
CORE • QUANTITATIVE
Ou.~lil~.- (r,r~' (nli,uir~vl I ,ir;~~' (~,~I~ t ~,r~
FI.k('C) ~I1Cl)Ili('
SHORT TERM
I iiluirl \tiu'1 ~ti1,ui.ir;~'nu'nl it ,~~tili
~liinr.~ .+~L~rl.~'(
i,it,il~l~' fi~~'tl Ini ~ini~'
I,~x I ~~'nil~t I it~~~l Ins ~~nu'
°°~ INTERMEDIATE
(~i~r~' I i~r'~I Inlu11N'
Inl~~inx'clLil~' (~rn~'innu'nl
Int~'nii~~~li,it~' (~~~~~'inni~'nt (~n'~lil
^ C;ROWTH
1~ii~~' (~r~~~~lli
~1i~1 (.ili ~ ~i~~~~lli
tiin,ill C ,il~ t ~r~~~rll~
ti:'~tll~c;~~~~~lh
I~'~ lun~lu~„,
~~ SPECIALTY HXED INCOME
~t li~~' (~n~' I'lu~
li,il~ilily I)ri~~'n Im~'~inx'nl it 1111
tilr,il~'~~ir~
4
~~~ ~~~~~ `/~r~i~~
Investment Team
Teri A. Bielawski, CFA, CPA
1 x~x~ricv~~~~ - I~; 1'~~~~r~
Eric I. Hohncs, CFA
1.~~~~~vicnr~~-- 1 ; l~~~us
James R. Kirk, CFA
1 ~~~~~~~rir~nr ~~ - ; ~ Y~~<~r~
Peter M. Klein, CFA
f x~~~~ri~v~~ ~~ -- 't; 1"~~~~~:~
Joseph W. Kremer, CFA
l~J~~~ric~nr~~ -- I S 1~~,ir~
Mary Jane Matts, CFA
1_~~x~ri~~n~~~ -- 'O Yc~u~
Ted Y. Moore, CFA
Fx~xv~i~~nr~~ -- l_' Yc~u~~
Cram P. Nedbalski, CFA
! x~~wi~~n~ ~~ -- 1 ~' Y~~~~r,
Daniel M. O'Neill, CFA
! ~~~xvicnr ~~ -- 1. ~ l"c~ir~
Scott G. Richter, CFA
l ~~x~ricn~~~~ -- 1~1 ?'~~<u~~
All Cap Value Team
I yl~~ntiivE~ ~~xl~~~ri~~n~~c
I~i~ci~~lin~~~l I~r~~~~~ti~
C. ~mE~~_~~ it i~~~~ I r~~c (. r~~~ ~,rcl
I'~~rf~~rm~u~~~~ clri~~cn
Investment Philosophy & objectives
Philosophy
Im~~~~lin~; in tit~lli~li~~~~lly cl~~~<~~~, luw c~x~x~~1<~tiuu, u~~t-ui I~t~~~~r >Trx~kS is ~~ winning; ~lr,~lt-,~~,
^ Prulit<~l~ility c~xhihit~ m~~~ui r~w~~r~iun ~ui~l t_~<u~nin:~~;;n,wtl~ ~~rr~ititt~n<<~ i~ r,~rr
~ E~UI IIIVf`tilOfs l('n(~ 1l) tilr~llti{lf-III(' f'~lr,l~)~)~,llf' I('lY'nl ~)fO~II~I~)I~II~' 111111 l~lE' (UIIII'(' ~ln(~ l1i ~)Il(~('
Sly ~(k~ ~ll (urclu~,~;l~~
• ;A~ ~i rF~sult, ~u~~r~riur fnvf~~U»~~n~ rf~iurn5 ~ ,u~ lu~ <<<~hi~~~~~_~cl I~~, in~~~~~tin~ in ~t~ili~li~ ,~Ilv ~li~~<t~~,
(uw-f~x~x~~~t.~iiun slucl:~
~ ~~PC<IUSE' Illl)til InVE'~lurti <lf(' Il1Vll~)I(<l~~V ~UCIISE'(~ ~)Il nC'~11~-1f'llll ~)ruti~?E'(~1~, fnn(~~lnl('nf<l~ ~1n~i~V51ti,
furusE:~l ~~n lunti-tumi c~~u~nin~;ti ~~ru~~~r~~~l~, <,u~ ~f~~~~u~~~1~~ ir~ily un~lrrv~~luc~l tilu~ I~~ Krum mt~rE~ly ~hc~~l~~
~~ucl~5
W~~ luul. f~~r a ~~utiiii~~c~ c~~f,ilvsi in ~~r~l~~r 1u <wuicl ~I~r~ ~ I~i~~f ~~it(~,~II ~~t v~~lu~~ inv~_~~fin~ - I~E~in~; ~~,irly
Objectives
(~n~~x~rfurm 11~~~ Rus~~~ll :~U(1O V~~Ine In~lf~x
• Pruvi~lf~ I~i~;h tul,~l rf~turn tl~ruu~h ~~ ~~uinl~in~~liun ui c~~~~ii<~I ~~~~~~r~~~i,ltiun ~ui~l ~livirlf~n~l in~~umc~
~~
•
•
•
~.
^ ^
^
nvestr~nent Process
Process
VV~~ in~'t~~t in ~l-x1:5...
I I~,~f ~-r-~ ~t~-fi~tic<~Ily ~ h-~~-~~ (Ir-~ti r~~(i~~ ~~f ~~ri--~ I~> ->~-rnin~~, < ~-~I~ fl-~w, -livi-I-~ncl, Im-~I. ~~~-lu-~ ,uicl S~tlt'ti)
I h~-I ~~r~~ un-I-~r~~al-i-~~I r~~l~-li~~-~ t~, (I-~~ir -~,-rnin:~ ~~~~~;~~~~- ,ui~l Inns; t~~r-» ~~,u~nin~,~ :;r-~~~~11~ (~r-~~~x~~~i;, <~~Iju~i-~~I
fnr nil.
• I<I~~~-Ilv, Inr which Ih-~rE~ i~ ~~ ~~n~iii~~-~ -,~1~-I~~sl
~-,~-~~-~~,~I
(~Ix~,i~uu~~~
I'~~~i-i~r,
'~~ l~n~lr~r~.ilu~~~l ;~~
(~,~~,~Iv~~
Overview
S~a~;e ~
Universe
-~~~~~r~~xin~,it~~ly Z-lUO ,lucks
~~~ilh m,irke( c~~~~s =~ ~ 00 million
Static 1
Value Screen
I',/F, P/F3, I?%CF, PjS, I)ivitlE•n~l ti'icl~l
~~~~~~ro~~imatE~ly -1000 Stalis(ic.~lly t ~hc~~~F> tilucks
Slas;c :~
Fundamental Analysis & Valuation
,~~~~~roxim~~tuly X00 UndF~rvalucd 5locks
Stage a
Timeliness Considerations
Portfolio h-lolrlings of
t;0-1.10 Stucls
Fundamental Analysis
N~~rm FPS
Fundamental
Analysis
LT Gr~~wth Rate
Risl< Level
Valuation
Models
y
V~lu~~tion
Potential Return Analysis
• f 51im,~l~~ n~~rm,~li,°rcl f I'S
^ ~n<~Iv~~~ hi~l~ni~~,~l R(_)f u~in}, Oii~x,nl I~~rn~ul,i
^ (~~~n~i~l~~r ~>~~silf~~n in lui~in~~~~ ~ ~~~~I~~, ~~ru~lu~~l ~ ~~ I~~, ~~~lr~~~~r~lin,u~v i~~~ms, ~uc~uitii(i~~n~,, ~li~c~~lilur~~~
I~<~I~~rmin~~,i~~~~r~,~~r~i,~t~~ Pif r~~l,i(i~~~~ I~~ S,~P ~;(lU I,.~~,<~~I ~~~~~~n ~~r~~j~~~ t~~~l ;;ru~~ll~ r.~t~~, risl. ,uul hi~l~ui<<~I r~~l,~1i~~~~ N,l
• Mulli~~l~~ r~~l<ltivr Pil_ Iw ~ urr~~nt S~C~N 5(1l1 N%I ~~n n~~rni~~li~~~cl [ Pti
^ ~~~~I~~uI,U~~ I,u;;~~l ~~ri~ r I~~ n~iil~i~~lvin4; t~u~i;~~t I'l I~~ n~,rm<~li~~~c) I f'~
PEGY
^ iP'I <~n nr,rin<lli~~~~l I I'Siirl~m~ ~~~m~ ~~r~~j~~~ (cal ~r~n~tl~ ~ ~~i~~l~l!
^ "VVh~~t v~xi"rc~ ~~~ivin:; ~~~~r~u~ wh~~l v~~ii"rr ti;~~llin;;"
Implied Growth Rate Analysis
^ EPS gruw~h r<il~~ impli~~cl I~~' r~~l~~li~~~c~ PL ~u~cl r~~l~i~i~~~ vi~~l~l
^ li im~~li~~~l ~r~>~~~lh I~~ti~ Ih<u~ 11;~~9 ~~r~ij~~~ ~r~l f;r~~~~~lh r,~~c, ~,In~~l. i~ ~~~Ir~~~ ~i~~c
Theoretical P/E
^ Rc~~;r~~ti~ f'%I '~ ~~~~~inti~ ~~r~~jc~~lc~~l ~;rrn~~th r,~I~~ti, ~~,~~~~>ul r~~ti~~~ ,u~cl ri~l, I~ir ~iiir uni~~~~r~~~ ~~t ;tug I:~
^ f'lu~; ~~~ri,~l~lc~~ (~~r ~~<u~h ~iu~l. inl<i lh~~ r~~~;rr~~i~u~ r~~i_i,ili~n~ l~~ ~I~~I~~rn~in~~ Ihc~~~rc~lic~~il I'/E
Free Cash Flow Yield
• ((Nc~l inc~~mc, ~ ~Ie~~r~~~i~~li<m) - l.• yc~,u ~~~~~r~li;c~ ~,~~~it<~I ~~x~x~n~litinc~ ~ 3 ~~~~,u ,n~~r~~~;E~ in~~r~~<~5~~ in ~~url<in~ ~~~~~~i~~illli~m,~rk~~l
a~~il<~li~~~l i~~n
• In~li~,ili~~n ~~( ~~ri~~,itc~ m~u~l~~~l ~~~~luc~
Risk Analysis
Risk Score
^ {~uinfilE~ r~~nk I~,~~f~~l u~x~n tin<~n~i,~l ~xriifi~~n, ~~<~rnin:;:, ~t,~l~ilit~', ~li~ri< ~~rirc~ ~~~~I,ltili~~~, ~~,~ri~~l~ilily ~~f ~~~u-nine
eslii~r,~t~~s, lic~ui~lity
Role of Risk Score in Valuation
• In~~u1 in n~ulli~~l~~ rc~~;rc~~~i~~n il~c~~~r~~li<<il (''I
^ f'EC;I', im~~lit~cl ~;r~n~~lh r~~1r, ir~~t_~ ~a~l~ (Inv ~~it_~I~I <<,n~~~~irc~~l ~~~ith ~~Ihr,r ~t~x~l.~~ in ~~~m~~ ritil. c~uinfilf~
~ ~Zlti~~ ,l ~<1(t(11~ IIl C~f't(`Cnllnllly ~~11~4~t`~ ~~'~ ~OI~ ~)~~l('llll~l~ IY'llll'll ~In,l~V~l`~
11
Investment Process
Risk C~~ntrols
1~1a~imun~ ~~~~ti~r ~~~~~~i:;hi .A fZu~~,~~ll ;O(1O Ualur ~f~~1~ir ~~~~~i~h1 ~,r I~n~~~~ll ;0111) Value ti~~r1~~r ~~~r~i:;hl
~ 1(I';;~, tivhi~i~~wt~r iti It~~~
• Minin~im~ ~~_~~~t~~r wi~i~;ht "I%; ui kus~rll ;(111(1 Value ti~~~1~~r w~~i~hl
• ~~I)-1•-t(1 sl~x I.~
N~~ n~~tr~~ Than ~"~~, in ~~ ~in~lc~ 5t~u I:
^ F~~r ~mall~~r ~hx~ks, wf` will n~~t ~~ur~ ha~~~ nl~~fr~ than `)11 ~lav~ ~~i~ ~~ ti~~~~k'~ iraclin~ v~~luni~~
^ M~~nilc>r h~~1a, a~ li~~~~ ri~l~, ~~>cffi~ i~~nt ~~f ~I~~irrminati~~n and I;arra ri~l< in~lc~~ c~~~~~5urc
11
•
•
s
•
^ ^
Investment Process
w
Sell Discipline
l h~~ tit~u I. ~x~rt~~rm~ ~,~~~~II ~u~~l c~ith~~r r<~~~~ I~~~~ ~ ~r ~~~ ~~~r~ ~~~~ I~E~~ ~~ri< <.~ 1,u~~;~~(
• ;~ I~~~~-~~r ~~ri~~f~ t,~r~ct r~~~til~~ fr~~n~ rf~~~s~r~~m~~n1 ~~f n~u~m~~li~~~~l c~~~rnin~~, ~r~n~Ih ~~nlrnti,~l ~~r ri~l:
~\ m~~rc~ ,~ilr~~~ fi~~~~ ~i~~rk i5 i~l~~nliiif~<I
Rf~~~i~~w h~~l~lin~ if int~~~ri~y ~~f fin.ln~~i,~l rc~~~~rtin~; iti ~u~~~~_~~~t
~:~
__
•
•
~ Characteristics*
•
# of Holdings
Wtd. Avg. Market Cap.
Dividend Yield
Price/Book
Price/Sales
Price%Cash Flow
LT Debt/Capital
Cal '2006 P/E
• Cal 2007 P/E
• Barra Beta
Cash
i
^ ^ ^
Composite Overview
~~s of 12/31 /OC
Capitalization Ranges
lZuSSell:,or~r~ rusf~ll c>r~~~
Con,~x~~it~~ 1~,luc, 11-larket C~,p Com~ u>sitFl"s~i ~~~luu !"4,1
~~1U0 h 25.G ~4.1
11.; 1c>18
?`~1O h <,`~~IOO h ~1~.~~ X1.0
~(,~~ I, $10U I~ ~; ~, <~1U b 9.1 ~.~
z.,> 2.a <~;1 ~> ;. , ~.~~
1. ~ 2.0
Top Ten Holdings
11.4 11.2
3~^; 9";~ Cun ,f,uSilF~ l"~~)
i\m~ ric~u~ InPt~rnaiiunal Gruu~~ Inc . ?.,
11.2 14.2 J!'Mur~;.u~ (=~ha~c .G Cu. 2.G
~J. ~..i.~ ~-JCkull iti1u~)I~ ~ ur~?. ~.~)
1.~0 1.(1(1 VF~rirun Cunnnuni~~,~fiuns Ins. 1.-4
13~u~k n( N~~4v York (~~~. -1
2
O.3~,,, O.O",~, .
t;.inl: ul ,~~n~cri~~~~ Cure. ?._'~
h~t:u.~I h~_m (:)il Cure. 2.
CunucuPhilli~n Z 1
Piizer Inc'. 2.(1
CIGf~~A Curb. 1.'
°4. of Pu,iiolio _'.;. 1
Chara~lcri~lus shown arc' ~~al~.ulatcd hascd rin .~ rcprc~srnlaliv~~ a~ u,un(.
14
Composite Overview
as of 12/:31 /OG
Composite Comments
^ Adding to holclin~~ in Heali~h C~~re at
~~th~active pr-i<e
^ Swal~l~in~ hc~lclin~s within Cc~nSrrmer
Discrc~tic~n~u~y ~u~cl Inclrrstri~~ls hasc~d can
v.~lu~~ticrn
^ r~ddin~; selectively tc~ Infc~rrYiatirn~ Technc~lc~~;~
^ Maint~~ining ~~ I~~rge cal emph~~sis in tl~e
cc~mlxnite
Sector Diversification
c ~~r,>r,rr,r~~~ n~„ r,•,~r,~,,~~1
(nnumurr tifal~lr°,
1 „r~,,,,
l,r,,,,,r;.~l,
I Ic~.ilfhr ar~~
l~,~l~,~rr;<~l,
Infrrrmarirrn Itvhnr~l~~.~,~
i~farcrial,
It`It~r nn i
Illililir.
ii In 1 ~ 'u ,ii Iii
li
Composite Holdings
~ls of 7 ~/:> 1 /OG
Consumer Discretionary
VI I II 11 IV INl
111E ~ 1111~ INI
iu 1L' f V'-ANA I -ARNti IN1
lil iK(: 1l'r\RNI F IN( ~- ~ 1
Ui111~VIZt~IN~ ORI'
ffl)Ik.ATCIil111'1 tiI~ ~IZ15
Ft~~ 11 I~'K hlR INt
c ,~A'JNf I 1 IN1
H11N1 11C1'r ~I IN(
Fp 1N1 H\ Mr 111 >IZ I I I; -AMEK•"v til I`~
IUf ,AR1 IN1
INI ~l ~tilhll NFU I Ill til'\ tii' -U !k
1.1hh~ h.~~ IN1
IE 1N1 S ~AI'I' VIZ 11 C;h< a il'
ICJ IN1
n4(l a 1tiAl Uti 1 t SRI'
N~\V' 1"1 IKh I LAZE ti I 1~ 1 ~l \
tiN;AI'! 1N INt
SI:ANl f 1" VV'hti
VV'-AI I UISNII ~ ~ 1
Consumer Staples
! VI 11;1 iHl tit I IVA'CI'I'I ti I'I t ^,I H
(~ W ~k diA 1 1 ~U1),ti INr
IIIINJIIII~~
r.Kv r I1 ,1 ,u~ IN1 1 1 ;v
N1 ~I Si 1N i ~ x 11Zti IiIZI VAlNt : t I I;
SVII\YU'IN1
tit_~I'IKbVI l~ IN1
rv,~ 1N rug .I ~~ I`.~ ~ I v
I ~~I INt
Energy
4N,AU-ARhi ~ I'El1 ~ 1 HZI'
tII1VRE?NIIA,-At~~tt~Rl' ~~
~
f
~ 11N~ i(r rl'I IILI II't ~-
-~'~
11X<;N ~1t 11'~II_ t t rill' ~'~'`~
t ,I ~ ~R-11 INUti I I I ~
INPUT (ri'll't'T IN(
~tiv\K;A ~ lid 1N ~ 111 < < HZI'
IIUG1tAll IZ INf-
h~ 1Y~1 I tt ~ I ~ I I til II 1119 ~ `~I'~ ~N~ Vf 11Z \
Financials
-AIltilAll ~uRl'
VAtlKit~ANINII t:lt~ ~1~1'IN1
R~ANh NIV~' 1URh INS
(~ ~(`IEIZI( ~A IN(
t ,~ HULLAN ti.A~-I Iti ~ ,Ki H!I' INt
I I VIII H HZI 1 I INI tiV ~ ~ ~ .1<:~ DUI' INS
1 U BIZ,At I n1 \NN I I H ~~ V11 11Z`~ ~ ~ !I<I~
II' htr lIU :vN I I I vtil R (r i
hI 1 t ~ HLI' NI \\
\1111111 INS
NV1111NVI ~ ITY 1 ~ IZI'
NI\\ 1~ 1hh t N1tiI1 I'.\\(i SKI'
I'll'I IZ I;AI I I:~Al c ~ !ti
K 11?IAN ~:R~ il'I' IN1
tii I I\V'-AL' t ~I I VIJ I ~ ~ I'
~l'NIKI'til IiANhti IP~u
I I ~ \NI IZI I IZ AI~l 111 I ~~ ~ ~, ~RI~
1 ~1 rll l u n nIN, ;ti IN1
l iti H-ANt t IZI`
Healthcare
V1;111~II f-ARti
~ It :Nv t < rKl'
I il~I I I I n1~ :A11 V~u x IN< < I_ ~~
II ~I INtiE iN .A l~ rl IN',f 1r,.
111;1 BIZ AI~!IZV ANtIK IIII)t ;ti
I I~~Nt IZI I II I ~~ :ti INl
I'IVIk IN1
tii IiIIZIN~,!'I~Ht:l{rt~IZl'
I IZI-A11 I U ~tiI'I I V'. IN(
\\'lf III
Industrials
t,11c ~
VI~RI'll I,AK Itit
~ s~ i r ,IZI' tiaf
IHIKI,CtU
I ~~ ~\1 G < < ~k I'
I I ~ rI211 ~V I~A~I ~ ~ 1V~I INI ~
~:INIK-AI I!lr`!VN111 ti~ ~H<I'
~.:INIhVI Ills ~ ~ ~
I N ,hnV\ I LI INI I R`.-AIh ,NAI INt
N~ANI'1 ;A'V'I R IN1
I'~AI I i ~ SRI'
I'llNll IN ~VV'L`~I~dt
~I\NI>\I<I~RIt.I~Ilhtiti
I ~Nlr i~ti I'-A~ t ~ SKI'
li~illll~ I[tIIN~!IE U. III `.~ ~!KI'
\Rt AV'! ~ha I?VPII H IN(
lnformalion Tech
\NI )KI VV' < < 1121'
VI`I'I II I ~ V VII RI VI `~ INt
\\ NI I INC ~.~ ,
t ARt ~l .A11~ Rt H I I ~ I IZ1 1N1~ ~~~~~~J
~,IUr.INI IN1
r1.tin~lnLr~~ nN11~~~11zr
H\hlZl~ C1 lkl'
I it\V'I I T S I'Vr A-ARI ~ r~~
IMfI <<)KI'
INI I F'J1T1~ 1N VI Itl_'~tilNltiti'~1A1 I-iti
VIIIhH!I II1~ IIZtiIN1
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tiAItIZI I II I ~~ :~ r ( 1RI' ~ I ~
~l~~in11 IIZ11 ~ ~'~i IN(
V'1511V1 INIIIZIlr-1l~i1 ~I~ ~!.l
Materials
.Ali ~ VIN(
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Te IeCOm
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VI~:I < <?IZI'
tii'RI~~iI PJIVII I ~ 1 IZI'
V'l lZi7r ~~1(~ ~~I^.1l ~N11 -A11~ 1N~
\\'INI'~IIZI \11 t ~ HZI'
Utilities
-A:v,rhlt AN, I I I~ rVAR IN~-
I H'~hl f NIR1Il ~ ~ HZI'
FI H`.~ V~i INI I
f I'I < dtt 1U1' IN1
NIti~ ~URt l INt
I'I I'< < ~ lit it I11N1 .S INS
1 fi
Annualized Returns
S Munlhs 1'iD
Russt•II tnn(i Value 11.1~P'.• ~~. ta'•
Composite Return History
as o1 "12/31 /O6
1 Year t Ycarti ; Yc•ar l l l Y~•.ir~ Additional Information
.'1 .~~=1', 9 ~.Yf,'~~ 1 S. ;•1',~;, 1 fit. '(~"„ I',i~i ~x~rh ~rmanre iti n~q i ~uaranlee nl lulun> results 1 he rciurm ~{n
~ td'%~ 1 ~ -'ll'S6 7 1 ..O'+:, 1 1 .7 1"„ nut r~•Icrl Ihi• rl<•du~ lien ul inveslnx•nl adwsury Ic~~~ hul ~I„ a~yiunr•
- - the minvcsununl ul rliviclrnrls.uul ~ ~~hil.~l wins. the ~iii•nl's rc~lurns
will h~• rc~iu~ rcl h~~ ilia aclvisurv I~~•s.uul anv r~lhcr ~•~~x•nx~s it ni.iv
incur in Ilu• mana};cnuvil ul the ,n ~ ~ nnil_
This page may not be presenlerl without the detailed performance
presentation disclosures ~n-hich includes all footnotes.
liiiiiii~~r~'%
<.
Why FTAM?
F~~cu~. 1 f~<~mwc-rl<. f'er(~~rn~ance.
Organization
Institution,~l focus, c~~mprf~h~~nsiv~~ rc~s~>urces
People
tenured investment profession~-Is, str~~n~ crf~denti~~ls, highly ~u~cessif~le
Philosophy
Disciplined, client focused
1 f3
General Disclosures
Fifth Third .-~S~F~t Mana~<~nienl, Inc. i~ ,in inv~~~lm~~nl aclvise~r r~~~;i~lE~re~l uncl~~r Elie Inv~_~~tn~~~nt A(Ivi~~~rs .-~cl of 1 ~1~}O. T li~~
infornialion ~»csente~l in the material is general in nature anJ is not clesigne~l hi acl<Iress vour invesU~ient ohjectiv~~s, financial
situation or ~~ar~icular needs. ('rior to nial~ing any inaesU~u~n~ <leci~ion, voii should a~s~~ss. or seel. arlvic~~ from ~~ ~~roles~ional
regarding whether any particular Iransadion is relevant or a~i~~roE~riale to ~~onr incli~~irlu,il circumstances. Although taken from
reliable sources, F1AM cannot guarauleF~ the accura~ v o(ihe information n~ccived from third parties. f hF~ nu~nlic~n ~~~ anv speci~i~
securifv does not constitute ~~ ~olicitalion or an offer to I~u~. or sell anv ~ecurily.
The opinions expressed herein are those of FTAl~1 .uul niay not ac lually conu~ Io pass. This information is current a~ o(the dale
of this presenla~ion aril is subject to c hinge ai any lime, based on marl.el and other conditions. inlet performance used
throughout this presentalirm is infenled to illuslra(c hi~forical niad~et U~ends and performance. Indexes are unmanaged and do
not incur invesUmenl managenu~nl fees. ~An ineeslor is un.ihle to invest in an index. The performance shown does not reflect am~
F~TAfv1 porllolio. fast performance is no guarantee of future results.
19
^ ^ ^ ^
All Cap Value
Performance Presentation Disclosures
~~s ~r ~~~1.~~~~lo~~
f3enchmark' Composi+e Iola( Finn
Total Return Russell Numlx•r of Composik> assets Assets
Ye<tr Gross Net 30(NI Valuc• Portfolios Dispersion (millirnrs) (millions)
I'1,t<~ I1_"'I,~ I;.;r~„ r, r,~'„ N~.A ~In.~;, I-II lt,_
_'11(111 _ ~.~1i^~, '-}.-1(~'~, {Ln~°~, - N.:A ; I. I I I'~. _l~. ~-
!III11 '1.Ih",, t;."ir,°~~ ~l.S,..• i ~~;,A ,-.-(l1 Ir1,l ll rir,
'(1(1:' I-1.-r1°.~ 1~~.;~1"~~ I;.17i°~~ i NV I~ILIr~~ 1-.~'r,:_'~i~
_'(1(IS ~J~. if)°~ ~1. '.fS^~~ .I Id°~~ ~-i '~!,A ll~.1111 'U, _' (~.Lti
Z(1U-1 II,.')r;„ I'".`ttJ„ Ir,.`i;l^ , N,:A -ll~'~~ --~'~~1~.t1'
~n(If, _I.'~-4"~~ 'n_~Y,i^~, __ .4^~, 15 ~t_;r,^„ 7~~ILY,'i ~I,_S~l_!~
RollinK Keturns (periods greater Than 1Z nwrtH+s are annuvlimd)
Year ' I.'~-l°„ _'(L` ~~ ,, _~. ;-l°„
, Years I S.iS(,"~~ Id.'?_' „ I ~. 'u^~~
Years I ~ 5'~^~~ l~_t~~i^,~ I I_'iP'„
I(I Years I i__'ll"„ I , , ~, I I. I1"~~
'Nr,t e~>rered I>~~ Report n( Indeln•ndr•it! rA,~~xur~<u11s.
litth lhrrrl \~~er Rlanu>;enu•nl, !n<. Ir,r~ ~ne(rar'erf ,inrliue.enretl flii~ re~unt in ~ nnt~rli.rrn,~ r~iih the (;(,~I,.~I
Inve>tmenf ('r•rlurnt,lnr r~ S(anrl.uri~ 1(.ll ~ rr~l.
likh ihrrrl 1s.ef Atarelf~enn'nl, lrn_h•t~ti~~eiu~diirmnirle~r•rilir,tti~~nln~nt Ill~t~~~,thr,u~tih !?~I?nn~,
In~ an inrlellenrlent u~rihin~ tirn~. !n<leln•nrlent ceritier relu,rl: art .nail,~lrk~ u~1~~r~ rriiue~t.
Notes Io Schedule of Investment Performance Results
I hc~ I inn
Tr lime is delined a~ all lee I~u1in, u, ~ , ~unt~ mana~rd by Fit(h I Bird \>,~~1 .'Vtan,t,t;enu•n~, Inr . ~ I I \ti1i-
Ihis includes mutual lunrls, r ~,Ilecli~~e hinds, r~nnm~un lunrls, wrap I+~e`separutely ntana,r;r~d ,u <<,unts
hvrap leeSti1:Ai, and imtiluii~~u,rl "_~11,uale an ,runts. I I:Ah1 is an incesnnent arhiser re;;islered under Ihr
Invcslnu•nt ,Ad~~is~rrs;A. I ~,t 1`~4t~,tnd is an indirect ~~,h,~ll~~rn~rn d suhsidiar~ ~,I l illh Ihird 13un~~rp.
1 he Cent 1rr~ite
lie rAII (=a 1 A'alur~ sl1~l~~ In,rlb,li,~s sr~r~k I~ ~ „till~r•rt~,rrn the Ru~u~ll ~i)nu Valur• Ind~~v ~ ~~r•i a ntul.,•i ,v~ Ir~.
I he p, nII, ~i ~s ntana~ed t. ~ this s114c ~~-ill IV~hirall~ he imr sled in .;n Ir. 1-!!1 ;t. ~, L5 ~ ~I lait;r , nod ~,r sin,111
aip r ~~nylanies that cshihit Ir~~~~ lirire t. ~ earnings, price tr. h,xil., ~,r prir~~ ~u sule~ rali~~~ n~laUcr t. ~ their
earnings r;nnsllt andhu asset ~alur•s_
I hip ~ ~ nnll„~ilr~ irn lurh•~. (ull~ rli,~ relic ur,trv, ler~ Ilacin>! irntiiuiiunal a. ~ ~ Ennis ~;n,uer Ih,in `~~
milli~,n, iii ludui,~ Ih~e.r~ a!r,untl~. n• I~,ntirv~~~ith Ih~~ lirm. I',~rtra~nt,nrr ~• ~~•wlt~ an~ tiuu~-
s~r•i;;hlerl rale5 ul return and a«~ 1lreseulrxl ;tin,ss and neI rat im~~stnu ni manttirnu~ni k~r5.
I his ~I~ le s ~ urrenl slund.trd annual ir•, sr hedule ix Fir~i `h_' ~ mill n .n^:.; n,~~l `;!'; mill =
(t -n^,~; ihema(Ir•r - n.idt°,~ the hitihest I~•e li5tr~d ~m Ih,~ ice ~~ he~iulr• is utilised t~~,~nnlnitr•
iln~ n,•t m~ul~•I n~tunr~ ihr~ lien ~alur5l>~~rtGdi~o ai Ica~l nnailhl~~ and ;;rinnel~ir ally lints
~+eii~~dir reUuns_ Ihelimiu~c~~rr<tdedi(e,1cv~,unlin>;,ntduu~~nu,i~a~~rueda",atiuYl
'erl~ ~nnanr• reform inrlurle rea6~r•d and unn~alize d t;aim ~uxl I~,sses, lilus inr. nte. ,A-1„nlhh~
,nnln ~~il~• n~iurn~ ~ne ~ alt ulale,l h~ wei~htin~ tin h .i~ ~ ~ punt ~ nuntlhl\ n~inm I,c its h, ti;innin
marhrt ~.alur~ a~ a Ix~rr enl ~ ~I Ihr t~,t~rl ~ ~ unh~ ~siL~ he,~inning niarl.<~t c~ilu~•. Valualiruts and
rr~lurm ~1rr~ i ~nnlmlr'd and s1,11erI in L~.S l)~ ~Ilars (-~ unto ~qle di51x•r~i~~n i~ r ahulalr~d ii~in~~ an
''_µial ~ceitihl~•~I aan~lairl dr•~iati~m nn•th~ul~~l~~••~. Disl~ertii,ul i~ rlr•r•rn,•rl rn~t anllli~ able Gar
runln ~~i~r~~s ~~ ith tine ~.r ir•~~,~r ,~~ ~ ,autos that ha~~~ nn•I lln ~ , ~ anln ~~i!r• ~ riteri,i b ,r Ihr- enlin~
Pt'al. r J~mlN,til lt' ~ Ieatl~ ill dale I~ ~~ ~t I' ~I II) ;.
!hr_ I~en~ hntarl.
Ihr hu~sell u~nlB' \~,rlur~ Index nu•a~ur••~ th~~ n•rl~~rnaulrr I Ih~~~e Rus>~~II uutit Indr~t
runylanics ~~i~h I~~~~~r•i 11rire-t~~ Ini~~h ralirn anr~ IUGVer Iru~c~~a~lr ~I ~;rrnvlh talur._ the til~x hs in
this indi•r an~ a15~~ nn nil,~•r~ ~~I r•ilher Iln~ Rns~~•II luixt ~',tluc~ ~n the Rii~~ell 'nirii Value
inde~e~. Inds°~es ,ue unman.r,t;cd and dr. rn ~I inr ur imr~>Inu•nt nl~ul•l,~enn~nt Ic•.•>-
Vdrlilinnal Inl~~nnuli~ ni
Vddilirnlal ini ~nnali, nt re~anlin,~ h~ ~lir ie~ I~ ~r r alt ulaiin,~ and rels ~i~inti relums. in, ludin~
,ulrliti~ni,11 tiim rle~inilnu~~inb~rniati~m, i~ a~,tilal~lr ull~ai n•yue~l. A ~ ~,ni~11rU~ li>I and
dcsr rillliun ~.I the Jinn's eomlx~sile,~ is awilahle ullrul n~rluc~r. Ibis relx~rl pre~enls i~,tsl
Iu~rt~a~nt.m, e, ~chirh i~ n,rt in~li, ali~~e ~,I Iulure n~~ulis
On J.inuan~ I, _'iiui,. I I \rvI e~Il.nul,~d its Jinn rletinili~.n I~, irn lode retail Sr`L\ lVrall
,u r~unils. Ihe~,~ reLtil ~l~rall titvl-A p~~rll~~li~n bud 11re~i~ni>h~ been e~i hided.
Th,~ lirni detiniti~m leas e~r~l~~•rl ~uul ~h,u1,>;ed <,~er time i7•min•:ik•~~~en relnal~ !icel~~
han~eJ during i~~~ ~ rerlr•iiniii~ nr 11r•ri~ al~,l i the turn e~~ ~Iuii~m u,nn imliUrli~ ar,tl ,Intl pr~r~~ anal
Inai ,n ~ ~wnl irn lusiral I. ~ nr.lilutir ~n,rl ar r ~xu11~ ~ ml~~, ,md ~') the Jinn eyl,tmi~ m i~ ~ in. ludr
ref 1il Stit ~'1h'r,ti1 ar r, dints. I Itr n• ~~.ts rn, mtmr~rliair• nt.tlr•ri.tl inilt•u t ~ ~n Iln• lum
inn~~~ sites K~ deliniii~m ~ hn n ,I ,~1 is i~utlined in the lirm~ f'~~li~ir.,rrnl I'i ~ edrn~e~ ~~lanuul
and is a~ailahle upr~n n~rlur'sl. I irnt r ~n1lart int,rrntali~vr is 6,r,rlerl,tt the (~~~u,un ,rl Ibis pale.
I~ ~ r~n~uir~ a liis;lr rlualil~ ,~1 r~~ln,ri~_~d , rrmllr,~ile data, Ihr• lirni r,~nrhleterl ,1 database
p~~pulali.,n~~vr~isr rlurinti_'inu,usin;;Ihe7~~ph~rC~anl~~~~ii, \rhis~a'ti~strnr. Iheniarl.el
~alu~~ and perl,mnurn ~~ data I .r art, Hurts in the limn eti~as >~~slenr<~nrall~ L ~.ulc•rl int. ~ Ihr•
rl,ll,il,asr~ (~ rr rnmp~ ~sile and assets under nrut,lt~cnu~nl a~ rr 11i~ at. Ihirin~ Ihi~ eyerr-Ise it
~~~as n~ pled Ihal r unrp~ pile a~srls t. ~r Ihree ~ ~ nnpn~ile~ ~~eir ~ nnin,~rl h,nn I~ir Inn1 assets
under m,m.t,>;r•nu_~iti t. ~i the gars 'W In I ~ ~in)> ihr~ , hant;e is dw~nx•rl imntatenal and has
n~i inylael ,m the aelu.tl r runp„~iles. Ihr~~;AI ~ti1 tigums.~h~~ce ha~~e I•een udjuslerl trtt ~(IU(1
ihr,n~~;h 'nti;
iti F,aulLtin Squ.ue PL1,•.r ~ Cin innuli. OI I -l ;~f, ~ ~ i' l.t{I1U.,~t(,.iih;l ~ ee~~w.l I.Al\Lr~•m 2~)
All Cap Value
Investment Team
Teri A. Bielawski, CFA, CPA
Teri graduated magna cunt laude from Miami University of Ohio with ~~ 13.5. in Accounting. Teri joined Fifth Third in May 20U~4 and hay
I t. years ul im~estnx~n~ ex~x~rieru e.
Eric J. Holmes, CFA
Frio graduated summa cum laude from the Slate University of New Yorl~ al (~enesco with a li.,~. in Fa~nomics and received an ~~1.I~.A. in
Finance from the fzochesler Ins~ilu~e of Technology. Fric joined Iif~h T bird in Felxuarv 200 ;and has 1 ~ wars of invesUneu~ ex~mrience.
)amen R. Kirk, CFA
Jim graduated from (~ase Wesfc~ni Reseiti~e Univer~ily with a h.A. in Economics and au tvt.l~.r~. in Finance. line joined Fifth Third in A~~ril
2002 and has ;5 years ~~( inve~slnu~nf ex~x~rience.
Peter M. Klein, CFA
I'ele graduated mama cum laude front whn (:arroll University with a R.~y. in I'hiloso~~hy and received an ti1.l~.iy. front Cleveland Stale
~~nlVel"til~y. F~e~e ~Oln'd Elfth Thlr(~, thr(Hlgh the ~~dXUti aC(~UI~IUOn, I11 ~anUary 2001 and has 2<~ V(`af< r)f Inyes(menl e?C~)enen(~e.
Joseph W. Kremer, CFA
Jose~~h graduated cuni laude from the University of I )elaware with a I;.S in Accounting and a li.,A. in Economics and receiyed an h1.1,.,~
from the University of Wisconsin. E le also has a I'h.l). in Finane front the University of South Carolina. Jose~~h joinrd Fifth Third in
Noven~lx~r 2005 and has I ~i vear~ of inve~~nx~nle~~ierien~F~.
Z1
. ~~'t,r~„~~~
All Cap value
Investment Team
Mary Jane Matts, CFA
ti1ary land gra~lual~~d, with honors, from ~PnV(~I1 College ~~~ilh a R.;~. in f_<~~nomic~s anal recei~~ed an M.I.A. in Iinan~<~ from t~asr~ Western
fZeseive University. Marv Jane j~~ine~l fifth f hir~l in -uly 2t1U5 and hay 20 nears o(invesUiu~ni ex-~erien<~~~.
Ted Y. Moore, CFA
T~rl gra~luale~l Gong Williani~ College with .~ ~3.A. in f listorv and re<en~e~l an M.f~.A from Indiana University. Terl joined Filth Thin) in August
2006 anal has 1 ~ vear~ of inveshnent et~x~rienc ~~.
Craig P. Nedbalski, CFA
Craig gra~luatc~~l h~om (aevelancl 5ta1e University with .~ I;.R.;A. in f finance <uul re<eive~l an M.I>.~A. front Ral~lwin-Walla~~e t college. Craig joined
Filth I hirrl in -anuary 2(1O; anal has I :? nears nl inve~U~ient e~-x~rience.
Daniel M. O'Neill, CFA
Daniel gra~luatecl from Cornell University with a 13.ti. in Industrial ~~ Labor Relations and r~~ceive~l an M.I3.A. from Columbia University.
Daniel joined Fifth Third in :1~xil 2005 .Intl has 1.; nears of invesUnPnl e~~~erience.
Scott G. Richter, CFA
ti<~ott graduated from the University of Rochester, where hE~ was eledecl I'hi E3eta Kap~~a, with a f~_ti. in Mechanical Engineering and rec eive<I
an M.B.iA. from Hail~ar~l University. ScoU joined FTAl~1 in lanuar~~ 200- and has I U nears of investmm~t ex-~rrience.
22
T A M
Biographies
Peter M. Klein, CFA
Senior Portfolio Manager, Value Strategies
Pete graduated magna cum laude from John Carroll University with a B.A. in Philosophy and later received an
M.B.A. from Cleveland State University. Pete joined Fifth Third through the Maxus acquisition in January 2001
and has 27 years of investment experience. Prior to its merger with Fifth Third, Pete served as portfolio manager
with Gelfand/Maxus Asset. Management, actively involved in the investment management of individual and
institutional portfolios.
Curtis Spears
Director, Public Funcls
Curtis is responsible for marketing investment products and services to Public Funds nationwide. Prior to joining
Fifth Third Asset Management in 2005, Curtis was a Vice President at Northern Trust Global Investments, where
he was responsible for client service and marketing investment products and services to the institutional
marketplace. Before taking on client responsibilities, Curtis was responsible for managing domestic and
international equity index portfolios for Northern Trust. Prior to joining Northern, Curtis managed equity
portfolios with American National Bank's investment management subsidiary, and had previously worked at
Baxter International as a programmer analyst Curtis received a B.S. in Computer Science from Northwestern
University and an M.B.A. from DePaul University.
si»zplifying your investment decisio~zs
I.
FIRM BACKGROUND
1. Please provide the following contact information:
Name:
Title:
Address:
Email Address:
Phone Number:
Facsimile Number:
Firm's Internet (www) Address
)ohn McCabe
Managing Director, Consultant Relations
707 Grant Street, Suite 2000, Pittsburgh, PA 15219
John.McCabe@53.com
412.291.541 S
412.291.5558
www. FTAM.com
2. Please give a brief history of the firm. Include the date the firm was
founded, and how long the current portfolio management team has been
together. Include any special expertise or experiences that would be
relevant to the board.
Fifth Third Asset Management, Inc. (FTAM) traces it origins to Investment Strategies, Inc., a Cleveland
based investment firm, which was founded in 1975. In 1992, Investment Strategies, Inc. changed its
name to Maxus Asset Management. The acquisition of Maxus Asset Management by Fifth Third in
2001 formed Fifth Third/Maxus Asset Management. On April 30, 2001 the name was changed to Fifth
Third Asset Management, Inc.
Peter Klein, CFA, the lead portfolio manager, has been part of the All Cap Value management team
since the composite inception in 1993. He is assisted by the entire Value Team listed below.
Name
Title
Years with FTAM
James Kirk, CFA Managing Director, Value Strategies 5
Mary Jane Maas, CFA Co-Director, Large Cap Value Strategies 1
Scott G. Richter, CFA Portfolio Manager, Large Cap Value Strategies <1
Eric Holmes, CFA Director, Micro Cap Value Strategies 4
Joseph Kremer, CFA Co-Director, Small Cap Value Strategies 1
Ted Moore, CFA Co-Director, Small Cap Value Strategies <1
Daniel O'Neill, CFA Analyst, Micro Cap Value Strategies 1
Craig Nedbalski, CFA Analyst, Large Cap Value Strategies 2
Teri Bielawski, CFA Analyst, Large Cap Value Strategies 2
3. State whether the firm is a subsidiary of, or related in any way to a
brokerage firm, insurance company, bank or other entity. If applicable,
please describe any material relationship (financially or otherwise) with any
other entity.
Fifth Third Asset Management, Inc. is an indirect wholly owned subsidiary of Fifth Third Bancorp. Our
affiliates include Fifth Third Bank and Fifth Third Securities, Inc.
4. Explain in detail any potential conflicts of interest that would be created by
your firm's serving the Pension Fund.
We are unaware of any potential conflicts of interest.
5. Please state the percentage of the firm owned by the employees. List the
owners of the firm (from largest to smallest with respect to ownership) and
their ownership percentages.
Fifth Third Asset Management, Inc. is an indirect, wholly owned subsidiary of Fifth Third Bancorp.
6. Please provide an organizational chart of your firm.
The organizational chart has been provided as an attachment to this questionnaire.
7. List the key management people within the firm, along with the number of
years with the Firm and the number of years of investment industry
experience
Name
E Keith Wirtz, CFA
Stephanie S. Thomas,
CFA
Timothy Ford
Jim Mautino
Steve Folker, CFA
Jim Kirk, CFA
Mark Koenig, CFA
Mitch Stapley, CFA
Title Years Yrs of
with Investment
FTAM Experience
President & Chief Investment Officer 4 24
Managing Director, Client Management 15 14
Managing Director, Business Development 4 15
Chief Compliance Officer 1 16
Managing Director, Growth Strategies 14 27
Managing Director, Value Strategies 5 34
Managing Director, Quantitative Strategies 2 11
Managing Director, Fixed Income Strategies 6 20
8. State the number of investment managers employed by the firm.
As of December 31, 2006, Fifth Third Asset Management has 36 portfolio managers employed by the
firm.
9. How are the portfolio manager(s) and analyst team compensated? On what
basis are bonuses determined?
Fifth Third Asset Management, Inc. offers investment professionals a compensation plan, which
includes three distinct elements: base compensation, investment incentive plan (variable comp) and
long-term non-cash incentives (stock/option grants).
The majority of the total cash compensation is derived by the investment incentive plan, which could
ultimately make up more than half of the investment professionals cash compensation.
All elements of the plan are formulated on the subjective components of being benchmark-oriented
and a 2/3rd measure for the 3-year result and on a 1/3rd measure for the 1-year result.
The non-cash incentives are particularly focused on key investment professionals. Long-term non-cash
incentives are used as a retention/discriminatory tool and based on the dynamics for potential wealth
creation and vesting parameters facilitates long-term commitment from key investment professionals.
Fifth Third's compensation structure compares favorably to other firms in the industry. The mixture of
abase compensation, investment incentive plan and long-term non-cash incentives, allows us to attract
the most talented and experienced investment professionals
lO.Over the last twelve months, has there been any change in the management
team?
Among the key management personnel listed above, there have been no changes in the last twelve
months.
The All Cap Value team has lost one member in the last twelve months, Michael Hays, CFA, resigned
in May 2006. Mr. Hays was a Small Cap Value Portfolio Manager. Additions to the All Cap Value
team in the last twelve months are listed below.
Name
Title
Date Joined
FTAM
Scott G. Richter, CFA Portfolio Manager, Large Cap Value Strategies January 2007
Ted Moore, CFA Co-Director, Small Cap Value Strategies August 2006
l1.Are there changes in the ownership of the firm anticipated over the next
twelve months?
No, we do not anticipate any ownership changes over the next twelve months.
12.During the last three years how many investment professional employees
have left the firm? Please state the reason.
Over the last three years, three investment professionals have resigned from the All Cap Value team.
13.Please provide the number of institutional accounts lost in the past five
years and the reason for the loss. Additionally, how many clients does the
firm have as of the most recent quarter-end?
Over the last five years, no institutional accounts have been lost from the All Cap Value product. On a
firm level, the number of institutional accounts lost is 725 over the past five years. As of December 31,
2006, the firm has 3,878 accounts and $21.8 billion in assets. The All Cap Value strategy has 1,732
accounts and $819 million in assets. These figures include Wrap/SMA program accounts.
14.Provide the coverage amount of your Errors and Omission (E&O) insurance
policy and the name of the insurance carrier.
Firm: Chubb, AIG, ST. Paul, XL, Lloyds of London
Limits of Liability: $75 M
Deductible: $7.5 M
15.Have there been any claims paid against the E&O policy in the last 18
months? If so, please state the amount paid and the nature of the claim.
No.
16.Has your firm ever been cited by any regulatory agency that resulted in a
fine, cease & desist order or other disciplinary action? If so, please explain.
THE FOLLOWING CONTAINS CERTAIN NONPUBLIC INFORMATION ABOUT FIFTH THIRD ASSET
MANAGEMENT, INC. THAT MAY BE MATERIAL TO FTAM AND/OR ITS SUBSIDIARIES AND
AFFILIATES.
BY TURNING THIS PAGE (OR SCROLLING DOWN) AND REVIEWING THE INFORMATION THAT
FOLLOWS, YOU AGREE TO KEEP THIS INFORMATION CONFIDENTIAL AND NOT PROVIDE OR
FURTHER DISTRIBUTE THE INFORMATION TO ANY PERSON OR ENTITY EXCEPT AS IS
NECESSARY TO FURTHER THE BUSINESS PURPOSE FOR WHICH WE HAVE PROVIDED THIS
INFORMATION TO YOU.
Fifth Third Asset Management, Inc. ("FTAM") was acquired by Fifth Third Bancorp ("Bancorp") on
January 2, 2001. Since the acquisition of FTAM by Bancorp, there has been no (A) final,
nonappealable judgment, order, decree, award, stipulation or injunction of any court, regulatory
agency or arbitrator against or affecting FTAM or its business that had a material adverse effect on
FTAM's business, financial condition, properties or ability to operate or (B) Action threatened against
FTAM or its properties, business or assets, to the knowledge of FTAM's executive officers. There is not
currently any Action pending against FTAM or its properties, business or assets.
For purposes of the foregoing, "Action" shall mean any actual claim, action suit arbitration, hearing
inquiry, proceeding, complaint, charge or investigation by or before any court, regulatory agency or
arbitrator and any appeal from any of the foregoing that, if decided adversely, would have a material
adverse effect on FTAM's business, financial condition, properties, or ability to operate.
17.List all office locations and the number of individuals working in each office.
Specify which office would primarily serve the Pension Board.
Fifth Third Asset Management, Inc. is headquartered in Cincinnati, Ohio with satellite offices in
Cleveland (OH), Grand Rapids (MI), Minneapolis (MN), Pittsburgh (PA) and New York City (NY).
The Cincinnati (OH) headquarters has a total of 86 professionals serving roles in investment
management, trading and investment operations, client servicing, compliance, sales, and marketing.
The Core Strategy team is located at this site.
The Cleveland (OH) location has a total of 14 professionals serving roles in investment management.
The Value Strategy and Quantitative Strategy teams are located at this site.
The Grand Rapids (MI) location has a total of 13 professionals serving roles in Fixed Income investment
management. The Fixed Income Strategy team is primarily located at this location, however, 7
additional members are located in Cincinnati (OH) as reflected in the total above.
The Minneapolis (M N) location has a total of 7 professionals, 5 of which are members of the Small/Mid
Cap Growth strategy team, 2 are members of the Core Strategy team.
The Pittsburgh (PA) location has a total of 9 professionals and the New York City (NY) location has 2
professionals serving roles in sales and consultant relations. Additionally, the firm has 10 sales
professionals in locations based on their assigned territories.
The pension board would be served by both our Cleveland office for investment management and our
Cincinnati office for client service.
18.Please provide by calendar year for the trailing five years the firm's total
assets under management (AUM), the total number of accounts and the
percentage of assets by strategy and client type (i.e., public, corporate, high
net worth)? What is the firm's total AUM as of the most recent quarter-
end?
As of December 31, 2006, FTAM's total AUM is $21,817.5 million.
12/31/2006 Accounts Mkt Value ($mm) % of assets
ommingled Fund 12 1,064.1 4.88°/
Corporate 177 3,777.77 17.31 °/
Mutual Fund 41 10,946.53 50.17°/
Not For Profit 509 3,734.37 17.12°/
Public 73 713.02 3.27°/
aft-Hartley 52 1,189.4 5.45°/
ra Accounts -SMA & UMA 3,014 392.12 1.80°/
otal Firm AUM 3,878 21,817.4 100.00°/
12/31/2005 Accounts Mkt Value ($mm) % of assets
Commingled Fund 11 1,080.4 5.02°/
orporate 202 3,817.05 17.75°/
Mutual Fund 39 10,865.11 50.53°/
Not For Profit 563 3,850.73 17.92°/
Public 90 798.73 3.71 °/
aft-Hartley 44 995.25 4.63°/
ra Accounts -SMA 681 95.6 0.44°/
otal Firm AUM 1630 21,503.01 100.00°/
12/31/2004 Accounts Mkt Value ($mm) % of assets
Commingled Fund 9 549.49 2.51
Corporate 258 3,908.37 17.88%
Mutual Fund 39 12,143.47 55.57%
Not For Profit 586 3,751.61 17.17%
Public 94 831.83 3.81%
Taft-Hartle 40 668.33 3.06%
Total Firm AUM 1026 21,853.10 100.00%
12/31/2003 Accounts Mkt Value ($mm) % of assets
Commingled fund 8 483.20 2.38%
Corporate 184 2,355.70 11.62%
Mutual Fund 39 13,045.89 64.36%
Not For Profit 378 3,464.53 17.09%
Public 124 708.84 3.50%
Taft-Hartle 20 210.84 1.04`/°
Total Firm AUM 753 20,269.00 100.00%
12/31/2002 Accounts Mkt Value ($mm) `% of assets
Commingled Fund 10 533.45 3.00%
Corporate 96 1,962.40 11.05%
Mutual Fund 47 11,675.99 65.77%
Not For Profit 307 2,820.48 15.89%
Public 70 558.28 3.14%
Taft-Hartle 22 202.29 1.14%
Total Firm AUM 552 17,752.89 100.00%
II. THE INVESTMENT PRODUCT ~ PROCESS
Name of the Investment Product: All Cap Value
1. What index is the best performance benchmark for the strategy and why?
The benchmark for the All Cap Value strategy is the Russell 3000 Value Index. The All Cap Value
strategy drives its investment selection process from the pool of stocks represented by its benchmark,
the Russell 3000 Value Index. Performance is evaluated against the benchmark for both returns and
tracking error.
2. State whether the firm offers a commingled fund for any or all of your
products. If yes, please indicate which products have a commingled fund
and the fee associated with that product.
The firm does not offer a commingled fund for the All Cap Value product. Commingled funds are
offered for Large Cap Value, Active Core, Large Cap Growth, Mid Cap Growth, Passive Large Cap
Core, Core Fixed Income, and Short Term Fixed Income investment styles. Fee schedules are tailored
per investment style with a 5% discount to all schedules if assets are placed in commingled funds.
3. How would this product be delivered (i.e., separate account or
commingled)? In addition, please provide the fee schedule.
The All Cap Value product would be delivered via a separate account vehicle. The fee schedule has
been provided below.
All Cap Value
(Minimum fee $20,000)
On Assets ($) Fee Rate (%)
First $25,000,000 0.80%
Next $25,000,000 0.70%
Thereafter 0.60%
4. Provide a brief statement describing the firm's approach to this
engagement.
We believe persistence of earnings growth is rare and that earnings growth rates exhibit mean
reversion. Yet investors tend to extrapolate recent earnings growth rates. Accordingly, the
stocks of recently successful companies are often over-priced and the stocks of recently
unsuccessful companies are often under-priced. Therefore, a contrarian approach, buying
statistically cheap, low expectation, out-of-favor stocks, is a winning strategy.
We invest in low expectation, out-of-favor small to large capitalization stocks, characterized by low
price/earnings ratios, above average yields, low price/book value, low price/sales ratios and low
price/cash ratios. The vast majority of stocks are selected from a universe consisting of domestic stocks
with market capitalizations in excess of $300 million.
5. Indicate who will be managing the account and provide the number of years
managing the strategy, the number of years with the firm, and the number
of years of investment industry experience.
Peter Klein, CFA, the lead portfolio manager, has been part of the All Cap Value management team
since the composite inception in 1993. Pete joined Fifth Third, through the Maxus acquisition, in
January 2001 and has 28 years of investment experience. He is assisted by the entire Value Team
listed below.
Name
Title
Years with FTAM
James Kirk, CFA Managing Director, Value Strategies
Mary Jane Maas, CFA Co-Director, Large Cap Value Strategies
Scott G. Richter, CFA
Eric Holmes, CFA
Joseph Kremer, CFA
Ted Moore, CFA
Daniel O'Neill, CFA
Craig Nedbalski, CFA
Teri Bielawski, CFA
Portfolio Manager, Large Cap Value Strategies <1
Director, Micro Cap Value Strategies 4
Co-Director, Small Cap Value Strategies 1
Co-Director, Small Cap Value Strategies <1
Analyst, Micro Cap Value Strategies 1
Analyst, Large Cap Value Strategies 2
Analyst, Large Cap Value Strategies 2
6. State the number of accounts and asset size of the accounts run by the
manager(s).
As of December 31, 2006, the All Cap Value strategy has 1,732 accounts and $819 million in assets.
These figures include Wrap/SMA program accounts.
7. Please provide (in a spreadsheet) the GICS equity sector allocation for the
product by quarter relative to the benchmark index for the trailing three-
year period (for a fixed income portfolio use the format outlined below).
This information has been provided as an attachment to this questionnaire.
8. Please provide (in a spreadsheet) the market capitalization allocation of the
equity portfolio by quarter for the trailing three-year period, using the
following breakpoints: < $1 B, $1 B to $5 B, $5 B to $10 B, $10 B to $20 6,
$20 B to $50 and > $50. Additionally, please provide the product's
weighted-average market capitalization for each period.
This information has been provided as an attachment to this questionnaire.
9. Please describe the investment process for the product. Include specifics,
such as how the initial universe of investable securities is defined, the
screening process (fundamental, top down, quantitative), the buy and sell
decision process, whether there is a targeted tracking error to the
benchmark, number of holdings, and maximum sector and security
positions, the use of leverage, etc.
We employ a disciplined approach to identifying stocks that are statistically cheap and undervalued,
coupled with arisk-controlled portfolio construction process. The process begins by running screens
using Baseline and FactSet to identify statistically cheap (low P/E, above average yield, low P/B, low
P/CF) stocks with market caps in excess of $300 million. This results in a list of approximately 1,000
stocks. We then perform fundamental and valuation analysis on statistically cheap stocks, attempting
to identify stocks that are selling for less than their intrinsic values. Our fundamental analysis is focused
on estimating normalized earnings, long-term projected earnings growth, and an assessment of risk.
These three outputs drive our valuation models, which include PEGY ratios, implied growth rate
analysis, theoretical P/E and potential return analysis. We assess a stock's timeliness by considering
possible catalysts, earnings estimate revisions and buying and selling by insiders. Buy ideas are
generated when a stock has a favorable ranking in terms of valuation and timeliness relative to our
universe.
The portfolio invests in 80 - 140 securities with no more than 3% in a single stock. The maximum
sector weight is the lesser of: 1) 3 times the weight of the sector in the benchmark; 2) the weight of the
sector in the benchmark +10%. The minimum sector weight is 1/3 the benchmark sector weight. For
smaller stocks, we will not purchase more than 90 days of a stock's trading volume. We monitor the
portfolio beta, standard deviation and tracking error as well as exposure to the Barra risk indices.
Securities are sold when they perform well and either reach or approach the price target, when a
lower price target results from a reassessment of normalized earnings or the attainable price/earnings
ratio, or when a more attractive stock is identified.
The portfolio managers on the All Cap Value product work as a team in conducting research, security
selection, and portfolio construction. Pete Klein is responsible for investment strategy and monitoring
overall asset allocation and portfolio construction. The responsibilities of the members following large
cap stocks are largely based upon economic sector. The members following small cap stocks are
generalists. The vast majority of decisions are arrived at by consensus of the team. On the few
occasions where a consensus cannot be reached, the lead manager makes the final decision.
lO.How long has the investment style stated in the above questions been in
place without deviation?
The philosophy has been very consistent over time and normalized return analysis remains the
centerpiece of our stock selection process. No substantial changes have been made to the decision-
making process since the inception of the product. We have added staff to the All Cap Value team
and have introduced some other valuation tools, including implied growth rate analysis, PEGY ratios
and free cash flow yield. Also, we have become more quantitative in our assessment of individual
stock risk.
11.Describe the investment environments in which your approach can be
expected to outperform its benchmark/style peers, and under-perform its
benchmark/style peers.
Outperform- We have found that our stocks perform best in rational, logical market periods
characterized by reasonable valuations and sustainable relationships between price performance and
company performance. We focus on establishing the "normalized price" for a company under normal
circumstances.
Underperform- When the environment is abnormal, such as during the Internet bubble of the late
1990's, companies are not accorded a market price that is based upon their fundamental value or
earnings power.
12.Are model portfolios incorporated in the management of the strategy?
We control performance consistency between accounts by managing all accounts in the strategy to a
model account. All accounts are rebalanced when trades are made and/or a significant cash flow
occurs. 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, Advent Axys.
13.Describe the use of cash in the investment process. What range of cash is
typical? Do you equitize the cash holding to enhance returns? Do you have a
policy for staying fully invested? If so, what is your definition of fully
invested? If you are not always fully invested, what factors lead you to
hold cash? Is there a maximum amount of cash you are likely to hold?
Portfolios are fully invested and cash is kept minimal. Fully invested is defined as <5% cash.
14.Is there a policy regarding industry or sector diversification? What is the
maximum concentration allowed in a single industry or sector? To what
extent might you have large concentrations in specific industries?
Our maximum sector weight is the lesser of three times the Russell 3000 Value sector weight or the
Russell 3000 Value sector weight plus 10%~. Our minimum sector weight is 1/3 of the Russell 3000
Value sector weight. These constraints are more restrictive with respect to large sectors.
15.Detail the account turnover and trading costs. Does the firm employ a
specialized trading procedure? If so please explain.
The annual turnover for All Cap Value strategy is typically 25-45%. As of December 31, 2006, the
turnover was 35%. We currently utilize Abel Noser to monitor best execution from our traders and
brokerage community. Trades are allocated on the basis of the following criteria in the absence of
direction by a client: best available execution, commission rates, relative merit and usefulness of
statistical and research material furnished. Evaluation of services by brokers beneficial to some or all
client accounts is based on the following criteria: general or specialized research capability, service
provided by calls, visits, analyst exposure, and/or seminars, trading capability, particularly in bonds,
amount of commission discount, if any, given by broker, speed of execution, and market-making
ability for municipal issues.
Our trading function is evaluated through quarterly reporting to the Managing Director of Trading and
FTAM's Investment Committee Oversight, along with a third party Abel Noser report. Our reporting
shows that our traders are competitive to the industry benchmarks.
16.To what extent are derivatives utilized.
Derivatives are not utilized in the All Cap Value strategy.
17.What methods do you use to ensure ~~best price and execution" in trading?
We currently utilize Abel Noser to monitor best execution from our traders and brokerage community.
In the absence of direction by a client, trades are allocated on the basis of the following criteria: best
available execution, commission rates, relative merit and usefulness of statistical and research material
furnished. Evaluation of services by brokers beneficial to some or all client accounts is based on the
following criteria: general or specialized research capability, service provided by calls, visits, analyst
exposure, and/or seminars, trading capability, particularly in bonds, amount of commission discount, if
any, given by broker, speed of execution, and market-making ability for municipal issues.
In order to provide the best possible service to clients in the transactions made for their accounts, the
determination of brokers with whom we will do business will be based on factors, including:
SERVICE: In order to maintain a high degree of knowledge about the business world and capital
markets, it is necessary to have a good line of communication open for the flow of information and
ideas. Accordingly, we need to maintain a business relationship with those firms, which can best
supply it with this type of information. Service would include analytical material and personal contact
with analysts.
OPERATIONS: It is important that a broker is able to follow through with a transaction in a timely and
accurate fashion. Good delivery and prompt settlement are important to the account from the
standpoint of the full use of funds in terms of holding down costs.
EXECUTION: It is our fiduciary duty and, at the same time, in the best interests of customers to obtain
good execution on transactions. Best execution may not always mean lowest commission or highest
discount. Execution refers to the ability and skill of the broker to obtain the best prices on a particular
trade.
Brokerage allocation is in no way based upon deposits that a brokerage house may or may not have
with us. A client may direct us to utilize a particular broker.
The execution capabilities of broker/dealers who execute transactions for trust accounts is continuously
monitored and considers factors such as: broker's reputation and level of experience, timeliness and
accuracy of trade execution and settlement services, applicable price breaks and discounts, type and
quality of research services provided, broker's ability to handle block trades, access to the markets the
money manager requires and the financial condition of the broker.
We deal with over 60 brokers so we can network to find the other side of the trade fairly quickly. We
also utilize Bloomberg Indications and Advertisements and Autex for natural flow. Our cost monitoring
system is Abel Noser. We utilize principal trades in situations where the trader deems it to be
appropriate and a benefit to our clients. We also route a small percentage of our business into cross
networks if we feel that it is where the stock is trading.
18.What criteria does your firm use to determine that there is sufficient
liquidity for the firm's total position in a stock?
For small and micro cap stocks, we monitor the position versus the average daily trading volume. SEC
guidelines consider a position liquid if the position can reasonably be sold within 7 days at 100% of
the volume. Positions are also monitored such that the position could be completely sold within 90
days at 25% of the daily trading volume.
19.Please provide, by calendar year for the trailing five years, the assets under
management and the number of accounts in the investment product.
All Cap
Value Number of
Accounts Mkt Value
($mm)
2006 1,732 819.00
2005 120 439.93
2004 4 416.23
2003 1 312.00
2002 1 141.09
The figures provided for 2005 and 2006 include SMA/Wrap accounts.
20.State whether your firm participates in any brokerage wrap programs.
State whether the firms proposed product is included.
FTAM provides investment advisory services to managed account clients of wrap fee programs (Wrap
Programs) offered by both affiliated and non-affiliated brokerage and financial service firms (each, a
"Sponsor"). The programs the firm participates in are Merrill Lynch Consults, Fifth Third Passageway,
Morgan Stanley-Access and Morgan Stanley-PPA (UMA). All Cap Value participates in all of those
programs.
III. RESEARCH
1. How do you obtain your research (in-house or third party)? What
percentage of research is generated internally?
We run screens using Baseline and Factset to identify statistically cheap (low P/E, above average yield,
low price/book, low price/cash flow) stocks with market caps in excess of $300 million. We then
perform fundamental analysis based upon company financial statements, other company provided
information and external research. The goals of this analysis are an estimate of normalized earnings,
an estimate of long term growth prospects and an assessment of risk (based upon a variety of measures
of financial strength, stability of earnings, stock price volatility and liquidity). These outputs drive our
valuation models, which include PEGY ratios, implied growth rate analysis, theoretical P/E and
potential return analysis. We look at earnings revisions (Factset, Starmine), buying and selling by
insiders (Insider Score) and identify catalysts in order to assess the timeliness of stocks.
We use external research from approximately 25 brokerage firms, plus a variety of independent
sources. In addition, we subscribe to services from First Call, Value Line, Standard & Poor's, Ford,
Ibbotson and other providers. Approximately, 35% of research is generated in-house and 65% is
generated from Wall Street.
2. Please describe how your firm obtains and pays for outside research
reports.
We use a portion of our brokerage commission budget in order to purchase traditional Wall Street
research reports. We also receive brokerage coverage for our firm that includes broker-sponsored
company visits and analyst visits.
3. Please name the three primary sources of data and/or analyses upon which
your firm relies.
Our strategy team utilizes three sources for fundamental research:
• In-house security analysis
• Brokerage house research
• Independent research publications
IV. MISCELLANEOUS
1. Please state whether you are willing to acknowledge that you are a
fiduciary of the fund as defined in the Employee Retirement Income
Security Act of 1974 ("FRIBA") and, for Florida Public Programs: Section
112.656, Florida Statutes.
Where Fifth Third Asset Management, in its role as a service provider to the City of Winter Springs
Employees Pension System, exercises actual discretion or control over the assets of the trust or the
administration of the trust, Fifth Third Asset Management acknowledges that it is functioning in a
fiduciary capacity as defined under ERISA and applicable Florida Statutes.
2. Please state whether you agree that the agreement shall be construed
under the laws of the State in which the prospective client resides and
federal law where applicable.
Yes, we will agree that the agreement be construed under the laws of the state of Florida and federal
law where applicable.
3. Please state whether you agree to venue for any judicial proceeding to be in
the county in which the Board sits.
Yes, we agree that the venue for any judicial proceeding to be in the county in which the Board sits.
.,
FTAM Organizational Chart
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Growth Strategies
Stetr folker. C1,4
Managing Director, Growth Strategies
sunil Reddy, CtA
Senior Portfolio Manager
large Cap Growth Strategies
Martha Seal
Research Assistant
Marty Hargrave, CFA ~ David Luebke, CfA
Portfolio Manager Portfolio Manager
Mid Cap/Small Cap Growth Strategies Mid Cap/Small Cap Growth Strategies
Scott Rilleadeau, CIA Jelf MCPeek Mark Demos, CfA
Director. ~1nal~~s1 Portfolio Manager
Mid Cap;Small Cap Growth Strategies Growth Strategies I arge Cap Strategies
Jill Thompson, CIA
Portfolio Manager
Small Cap Growth Strategies
\nry Denn
Director, I arge Cap Strategies
Ion Fisher, CFA
Portfolio Manager
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E. Keith Wirtz, CFA
President & Chief Investment Officer
). Jeffrey Knimpelman, CFA Pete Kwiatkowski, CFA Jim Russell, CFA
Senior Portfolio Manager, Core Strategies Senior Portfolio Manager, Core Strategics Director, Private Client Core Strategies
Quality Core Co-Manager Quality Core Cu-Manager
Barbara Wylie
Chris Hagedom, CFA Associate Portfolio Manager
Portfolio Manager
Dave Mason Dan Popowics, CFA
Associate Portfolio Manager Analyst
Tony Roberts
Analyst
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James Kirk, QA
Managing Director, Value Slnttegies
Nile Lim
Kesea«:h Assistant
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Director, Micro Cap Value Strategies Co-Director, Small Cap Value Strategies Co-Uiredur, Small Cap Value Strategies Co-OIfPCIOf I arge Cap Value Strategies Director, I arge Cap Value Strategies Director, Mid Cap Value Strategies
Daniel O'Neill, CFA Teri Biclawskl. CFA, CPA Gaig Nedbalski, CFA
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h1ark Koenig CEi1
Managing I)irertor, Quantitative Strategia~
Mike Wayinn Samrat Bhauacharya Zhigiang Sun
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Katie Jones
f xeaitive f ixed Income Assistant
Michael Martin, CFA David Withrow, Cf.1
Director, fax Exempt I ixed Income Director, laxa ble Filed Income
Management ~7anagem enl
Sarah M quirk
senior Fixed Income Portfolio Manager Ken Weddle, CL1
Senior Credit Analyst
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talon Schwarv
Wendi McFarland
Administrative Arista nt Portfolio Manager
Rvan Haartman
Associate Portfolio Manager John Ca ssa dp, CTA
Senior Fixerl Income
Portfolio Manager
Carol A Svihl
Senior Analyst, Fixed Income
Sehvyn Dews
Ir. Portfolio Manager
I-tollq Vandenloorn
Portfolio Assistant Chris Rieddle
Senior fixed Income
Portfolio Manager
Patt
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y
Fixed Income Portfolio Manager Joe Westerhaus
Assocate Portfolio Manager
John Hooting, CFA
Director, Money Market Management
Michelle 1'atsuk
Filed Incomo Portfolio Manager
Mike Kemer
Associate Portfolio Manager
Jonathan finkler
Associate Portfolio Manager
h1irko Mikelic OPI N IReplacrmentl
Senior f ixed Income Credit lnalya Senior Credit Analyst
Portfolio Manager Grand Rapids
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John Augustine, CFA
Chief Investment Strategist
Alice Gerstner
Administrative Assistant
Mei Doss
Investment Strategy Associate
Client Management
Stephanie Thomas, CFA
Managing Director, Client Management
Janet McCaiierty
Executive Administrative Assistant
Pamela Schmitt
Senior Relationship Manager
FTAM ACQlnn~s
Rick Floyd
Relationship Manager
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l3elh Adams
.Associate Relationship Manager
Proxi & SRI
Craig Chaikin
Client Relationship Specialist
Carey Krucr, CFA
Senior Relationship Manager
ITAM Accountr
Nate Maxson
Client Relationship Specialist
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Products & Marketing
Rick Ille
Managing Direc for
Produ is G Marketing
Nan Adams UPFN left 7iegler
Marketing Direcbr Markrting Direrloi Product Manager. Director
SMA ! 5'3 I unds 1 pCG FL4M ~ Insfl ~ ICG Retail SMA Produdc
Carne Christos OPEN lobo Paytun
Marketing Coo« linalor ~ Project Manager Manager
FTAM! Inst ICG ;3 Pas age~cay
Courtney Greek Charissa Brinkman OPEN
Marketing Acsislant Senior Mai keting Coordinator Manager
Imernal C Evlemal Connnunicalions External SMA Platforms
All P1.AM Proctor is
Fen Ulberling Christine Duval OPEIJ
Project Manager Marketing Manager Seawnal Intem
4ssistanl
Retail SMA Products
Ann Stippich Chris Zehetmaier
Production Manager Jessica Mavridoglou Reseaa h Manager
Mar keling Coordinator Product F Industry Researd~
,411 FL\M Products
Molly Schoeplein Leslie I firth
Marketing Coordinator Marketing(~ordinator
Amanda B~nvman
Senior Marketing Coordinator
Jennifer Galfrey
Projea Manager
Pooled Funds
I II I11 I IIIC.I~ v', ',1 I AI~A>~.:Ar:I 41I ~`:1 ,ltirti-I _'i~l!(Ih
Trad i nb & I nvestment operations
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Finance & Mutual Fund Operations
OPEN
Managing Director, Business Operations
Mary Smith
Administrative Assistant
Julie Searls Matt Ebersbach Russ Ungcrman
Controller Manager, Mutual Fund Operations Manager, Mutual Fund Administration
David Ross ~ ~ Tom Eldridge
Financial Analyst Senior Business Analyst
Nicu Savu
Compensation Analyst
As of I,',:SLU(,
Asset Management Compliance
Funds board Keilh Wirtz
President, CICI
..............................
)im Mautino Richard Holmes
Chie( Compliance Oflicer d0 Act Funds Ady
OPEN Matthew Swendiman
Compliance Oilicer Legal Counsel
Royce Carson
Compliance O(~icer
I II III Ifll~?. t~ 1~tif~ 11~?:A~. ,F ~~11^;~ A~i>I 12/41if16
ALL CAP VALUE 12/31/2006 9/30/2006 6/30/2006 3/31/2006 12/31/2005
All Cap Russell 3000 All Cap Russell 3000 All Cap Russell 3000 All Cap Russell 3000 All Cap Russell 3000
Value Value Value Value Value Value Value Value Value Value
•~
Consumer Discretiona
11.81 %
9.20%
13.03%
8.93%
12.52%
8.92%
12.80%
8.77%
13.12%
9.11
Consumer Sta les 7.77% 7.22% 8.17% 7.35%, 8.07% 7.25% 7.09% 5.32% 6.75% 5.43%
Ener 11.41 % 13.08% 11.23% 12.45% 12.21 % 13.27% 12.07/° 12.94% 11.19% 12.82%
Financials 24.16% 36.24% 21.63% 36.64% 20.75% 36.06% 20.51 % 36.26% 22.71 % 36.89%
Healthcare 10.22% 6.67% 10.50% 7.28% 8.23% 6.81 % 8.11 % 6.85% 10.34% 6.80%
Industrials 11.41 % 7.27% 11.64% 7.22% 14.09% 7.61 % 15.32% 7.88% 14.42% 7.48%
Information Technolo 8.96% 4.27% 8.10% 4.44% 10.20% 4.39% 10.53% 5.58`/° 10.08% 5.27%~
Materials 4.39% 3.90% 4.83% 3.75% 4.96% 3.99% 5.01 % 4.62% 4.50%~ 4.43%
Telecommunications 5.29% 5.78% 5.11 % 5.76% 4.21 % 5.50% 4.02% 5.47% 2.88% 5.16%
Utilities 4.33% 6.37% 5.31 % 6.18% 3.98% 6.19% 3.05% 6.28% 3.08% 6.58%
Cash 0.26% 0.00% 0.45% 0.00% 0.78% 0.00% 1.50% 0.00% 0.92% 0.00%
Other 0.00% 0.00% 0.00% 0.01 % 0.00% 0.01 % 0.00% 0.04% 0.00% 0.04%
7~
ALL CAP VALUE
9/30/2005
All Cap Russell 3000
Value Value
6/30/2005
All Cap Russell 3000
Value Value
3/31 /2005
All Cap Russell 3000
Value Value
12/31 /2004
All Cap Russell 3000
Value Value
9/30/2004
All Cap Russell 3000
Value Value
~~
Consumer Discretiona 14.80`/° 9.49% 19.40% 10.01% 18.51% 10.65% 17.27`/° 10.99% 18.14% 10.62`/°
Consumer Sta les 8.40% 5.54% 8.01 % 5.45`/° 7.60% 6.24% 6.98%> 6.08% 6.62% 5.72%
Ener 14.25`Y° 14.35% 13.56"~, 12.69"~, 12.49% 13.24% 10.45% 11.02% 11.79% 11.71 "~,
Financials 15.47% 34.66% 11.78% 35.85°~, 10.35%, 31.21 %~ 10.47'/° 32.84% 10.26%~ 33.15°/<,
Healthcare 11.90% 6.87% 11.74%~ 7.31 `y° 10.44% 3.85% 10.92%, 3.78% 11.08%~ 3.72%
Industrials 13.35% 7.25% 12.49%~ 7.16% 12.21 % 12.70% 12.92/° 12.65% 13.53% 12.50`/°
Information Technolo 11.85% 5.19% 13.86%~ 4.79`/° 12.29% 5.51 % 13.35% 6.12%~ 15.20% 5.78`/°
Materials 3.35`/° 4.34% 2.74% 4.38% 2.40% 5.55% 2.20% 5.39% 1.51 %, 5.33%
Telecommunications 1.83% 5.23% 1.90%> 5.48% 1.25% 4.63% 1.21 % 4.93% 1.77%~ 5.36%
Utilities 2.90% 7.03% 2.87% 6.86% 2.41 % 6.39%, 2.23% 6.19% 2.39% 6.10%
Cash 1.43% 0.00% 1.65% 0.00% 8.74% 0.00%, 10.38% 0.00% 7.71 % 0.00%
Other 0.48% 0.03% 0.00%, 0.03% 1.31 % 0.02% 1.62% 0.00% 0.00% 0.00%
ALL CAP VALUE 6/30/2004 3/31/2004
All Cap Russell 3000 All Cap Russell 3000
Value Value Value Value
~~
Consumer Discretionar 17.92% 11.08%, 18.98%, 11.80%~
Consumer Sta les 6.80% 6.12%~ 6.64%~ 7.00`/°
Ener 10.28% 10.56% 9.94`% 9.80`%
Financials 9.25% 33.14% 10.37°~, 35.40`y°
Healthcare 10.84% 4.12% 11.53%, 3.80`/°
Industrials 12.80`/° 12.46% 11.53% 8.30'/°
Information Technolo 16.25%~ 6.43% 16.39% 7.10`/°
Materials 1.15% 5.15% 0.77% 5.10`/°
Telecommunications 1.62% 5.08% 1.32%, 5.50%
Utilities 2.08% 5.84% 2.25%~ 6.20%
Cash 9.41 % 0.00% 10.29"/° 0.00%
Other 1.60% 0.00% 0.00%, 0.00%
ALL CAP VALUE
' .~
> $50 Billion '•1.
37.63% •1.
36.13% •1.
33.75% •1.
30.74% '•I
28.69% •1
24.26% •I
19.12`/° •1
18.67%
$20-50 Billion 24.74`/° 25.36% 25.78% 26.80% 23.93% 25.38% 16.97`/° 15.90%,
$10-20 Billion 9.09% 9.90% 10.51 % 12.10% 13.17% 15.33% 20.46`y° 19.54%,
$5-10 Billion 9.12`y° 9.15% 8.21 % 7.36% 12.17%, 9.21 % 9.44`/° 8.88%,
$1-5 Billion 15.92% 15.89% 17.96% 18.29%, 14.58%, 16.27% 24.29% 27.25%,
< $1 BllllOn 3.51 %, 3.57% 3.79% 4.71 `/0 7.47% 9.54% 9.71 % 9.76%
Market Ca in $ Millions 69,452 65,433 56,365 47,496 44,306 40,628 32,819 32,092
'~ ~
> $50 Billion ~ • 1'
17.82% • 1'
14.22% • 1'
14.80% • 1'
11.23`/°
$15-50 Billion 25.00%, 24.53% 20.10% 23.11 %,
$7.5-15 Billion 12.30% 15.44% 18.80% 16.80"~,
$1.5-7.5 Billion 28.38'/° 29.05% 30.80% 34.69°~~
$750 M - 1.5 Billion 11.55%, 9.62% 9.50'/° 8.07"~,
< $750 Million 4.95%, 7.14% 6.00% 6.09`/°
Market Ca in $ Millions 30,851 25,588 24,022 21,125
*Market Cap Ranges were available for 2004 in this format.