Intermediate Active Fixed Income Philosophy

• Utilizes the most stable, conservative issues
• Active management adds value by managing average portfolio maturities through interest rate cycles
• Effective allocation across bond types

Intermediate Active Fixed Income Strategy

• Positioning based on many factors including yields, spreads, inflation, federal policy, money flows, and the overall health of the economy
• Targets four main strategies: sector allocation, issue selection, duration exposure and term structure weighting
• Value added through actively managed duration
• Risk level analyzed relative to Lehman Intermediate Government/Credit Index

Fixed Income Securities

• Consistent returns through intermediate issues, generally 1-9 years maturity
• Average portfolio quality credit rating of “A” or better
• Corporates, treasuries and exchange traded funds may be employed
• Municipals may be used based on the client’s needs