A Disciplined Approach to Asset Management Analyzing Your SituationKnowing your needs and goals help us identify investment objectives and constraints. Crucial to success are:Goals Time Frames Investment Resources Investment Risk Tolerance Required Return RateAsset AllocationModern portfolio theory holds that asset allocation is essential to success. Performance depends more on the markets selected than the individual securities within the market.Asset allocation is central to our management of portfolios. We further divide major asset classes (e.g., stocks, bonds, and cash) into Sectors.This strategy responds to variables such as:Market price to book value Price to earnings Bond yields Market capitalizationSelecting ManagersSelecting managers who reflect the investment style of desirable market segments is critical to portfolio management. Appropriate managers can be identified only by evaluating the performance of managers with similar styles. We apply the following criteria:Sufficient history to allow analysis (typically 3 year minimum) Superior, consistent relative return (compared to others with a similar style) Superior risk-adjusted philosophyReportingMonthly account statements Transaction confirmations Quarterly performance reportingSummary A disciplined strategy to maximize returns while minimizing risk Quick, low-cost (no-load), implementation of decisions Broad selection of funds Continual monitoring of mutual fund managers` performance.swer.