Smith Group Asset Management

The investment process at Smith Group is designed to produce a relatively stable pattern of performance that exceeds the return of the specified benchmark. Our investment process has five steps:

1.	Identify the appropriate universe of companies for the investment strategy.
2.	Use computer modeling techniques to screen out high-risk companies.
3.	Identify companies that are likely to increase earnings faster than expected by applying computer modeling and traditional fundamental research.
4.	Sell companies when they fail our quality or earnings standards.
5.	Repeat the stock selection process in steps 1-4.

We control risk by being sensitive to the characteristics of a portfolio’s benchmark. For example, industry-sector weights are centered on the weights of the benchmarks. We allow a variance with benchmark weights if our investment process moves the portfolio in that direction.

We diligently monitor each security owned during daily management of our portfolios. We adhere to a strict selling discipline, giving any member of our investment team the authority to initiate the sale of a portfolio holding.