Charlie F. Mercer

National commercial bank

SMC's large-cap equity approach employs a top-down, GARP strategy, overweighting secular growth opportunities and underweighting cyclical industries. The primary focus of this approach is the S&P 500 or securities that have a significant weighting relative to their sector. The firm screens to find companies that have a pattern of consistent earnings growth over a period of years that exceed the S&P 500 historical earnings. The firm's small-cap strategy combines internal investment management capabilities with an ability to identify and use external fund managers. This approach employs a bottom-up, fundamental driven strategy that targets firms whose above-average growth prospects are not yet reflected in their share price. SMC typically screens for growth-oriented and special situation companies trading at a discount to their private, or fair market, value based upon a multiple of cash flow. Often the small cap stocks in which they invest are undiscovered, under-followed or misunderstood by Wall Street investors. SMC's multi-cap equity fund targets companies with significant potential for growth, regardless of size. The multi-cap team employs an 'hourglass' investment approach, combining top-down theme-based trend analysis with bottom-up fundamental analysis. The firm often targets young industries, new business concepts and more complex technologies and may make concentrated investments in high-growth sectors, such as healthcare or technology. Their bond investment strategy calls for a laddered approach. The fixed-income team employs various proven techniques in security selection, maturity structure and market timing to enhance total return. They purchase only investment grade bonds and investment positions are sized for optimal transaction costs and diversification.

VAM employs a bottom-up approach to portfolio management in the small-cap arena. Primary emphasis is placed on identifying companies that have a recent history of positive earnings surprise and upward revisions in consensus earnings estimates. They believe that earnings surprises and estimate revisions are better predictors of future stock price performance than more traditional approaches that are based on minimum absolute growth targets. VAM begins their investment process by screening for companies that rank in the top 20% of all companies based on earnings estimate revisions and quarterly earnings surprise. Further emphasis is placed on companies where VAM's internal expectations are materially different from that of the consensus. Cash Flow Return on Investment is the key metric on which they focus to determine the longer potential earnings power of a company. In the next step, technical analysis is used to provide market confirmation of VAM's fundamental findings. They use technical analysis not only for confirmation, but also to establish a framework for risk versus reward. Sector selection or rotation is not a primary focus. However, this does not preclude the firm from having several companies from a particular industry or sector in the portfolio at a given time. Risk management at VAM emanates from their sell discipline. Portfolios are reviewed on a daily basis in an effort to ascertain the performance of each position. A stock is sold or reduced in size when a company does not meet internal expectations, which may or may not be similar to Wall Street expectations. A stock may also be sold due to a change in strategic market outlook, becomes fully valued or a better idea develops.

Functions as a College/University

TAM provides continuous advice to clients regarding the investment of assets based on the investment objectives established by the client. The firm uses the following methods of analysis in formulating their investment advice and/or managing client assets.

PMK Capital Management creates long and short portfolios designed to capitalize on securities' anticipated cash flows. Their investment recommendations are not limited to any specific product or service offered by a broker-dealer or insurance company and primarily focus on small-cap equity securities. While their focus is on small-cap equities, PMK may also transact in the following instruments: ETFs, ADRs, other equity securities, preferred stocks, stock warrants and rights, bonds, debentures and convertible securities and other debt obligations.