Model Portfolio Core Growth Overview

The Core Growth Equity Model Portfolio combines a top-down sector approach withbottom-up stock selection to attempt to provide a diversified, large-cap, growth-orientedequity portfolio solution.

The model portfolio does not represent actual trading or holdings.

PORTFOLIO METHODOLOGY

• The Core Growth Model Portfolio is designed to produce long-term growth without regard for current income. The portfolio will generally consist of 25 predominantly large capitalization stocks. There is no assurance the portfolio will meet its objectives.
• The portfolio will seek broad diversification across most of the major economic sectors. A top-down investment approach to these broad sectors will be taken to determine the desired sector exposure of the portfolio. A bottom-up approach to stock selection will be applied thereafter.
• Due to the limited number of stock positions and growth bias of the selected stocks, the portfolio is expected to have volatility equal to or somewhat above the broader U.S. equity market.

STOCK SELECTION PROCESS

1. TOP-DOWN SECTOR APPROACH: Determine what we believe are appropriate weightings for sector and subsector exposure within the portfolio.

2. BOTTOM-UP STOCK ANALYSIS: Fundamental research resources available to the Portfolio and Technical Strategy Group are utilized to aid in stock selection. We will maintain a large cap bias to stock selection while attempting to stay with companies executing fundamental momentum.

3. PORTFOLIO CONSTRUCTION: Select what we believe are the best stocks that fit into our desired subsectors and also complement each other in order to meet the portfolio’s Core Growth objective.