Strategic U.S. Equity Portfolio

Market Leader Portfolio

Fixed Income Portfolio

FVCM U.S. Equity Fund

European Stock Portfolio

Strategic U.S. Equity Portfolio

H. Terrence Riley III, the portfolio manager of the Strategic U.S. Equity Portfolio (SEP), employs a value-oriented investment style known as Growth at a Reasonable Price (GARP) with a goal of providing returns in excess of the S&P 500 Total Return Index with lower volatility. GARP is different than a Deep Value style which, for example, seeks only to invest in companies with low absolute Price-to-Earnings or Price-to-Book Value ratios. Similarly, managers executing a Growth style will typically purchase the stocks of companies with the most outstanding growth prospects with little regard for standard measures of valuation. GARP is a careful weighting of both growth and value factors for optimal performance.

The SEP is a concentrated portfolio consisting of between 30 and 35 medium and large capitalization stocks. The manager adds value primarily through “bottom-up” stock research and individual stock selection and, to a lesser degree, sector or industry allocations. Positions are typically accumulated and liquidated incrementally over time; nonetheless, average turnover is low with a typical stock holding period of more than four years.

The equities in the SEP have outperformed the S&P 500 since inception in 1992, while volatility has been below the S&P 500. While past performance is no guarantee of future success, clients invested in the SEP have experienced a strong positive alpha during the past decade (details available).