The International Intrinsic Value strategy is bottom-up in nature. The screening process starts with a universe of 3,200 international companies which is narrowed to approximately 800 that are traded on U.S. exchanges, have a market cap >$1 billion and an internal minimum quality rating of B-. We then identify a universe of attractively priced stocks using our Price/Intrinsic Value calculation; generally this universe is the least expensive third.

Following the P/IV screening, we rank the available universe according to our proprietary Multi-Factor Ranking Model. A stock must have an attractive P/IV to be considered for our portfolio, but we also examine several additional factors. The process combines:

• Valuation
• Fundamental Strength
• Market Recognition

The Multi-Factor Ranking Model assigns each stock a composite ranking score that reflects in a single number all of the factors we believe are most critical to identifying a stock's true future potential. The composite scores allow stocks to be accurately compared, regardless of sector or geographical location.

Before finalizing a portfolio, we verify each of the model inputs with a thorough fundamental review of each stock. After considering each factor and validating our model inputs, we assemble a portfolio by selecting what we believe are the most attractive stocks that offer the largest potential upside, highest quality, and maximum diversification for our clients.

The portfolio holds on average 65-85 stocks balanced across multiple countries and industry sectors. The portfolio is limited to ±10% of the ACWI ex-US sector and region weightings, including emerging markets and Canada. Most of the stocks in the portfolio are assigned a weighting of 0.5% to 1.5%. This strategy can be managed according to client investment guidelines, and is measured against the MSCI ACWI ex-US.

An experienced portfolio management team, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, is the centerpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of our strategies to limit the risks inherent in stock selection.

Our buy-side risk control measures include:

• Attractive P/IV
• High-quality, large-cap portfolio
• Broadly diversified portfolio of 65-85 stocks avoids single issue risk
• Economic sector and region diversification
• Maximum issue weightings of 2% at cost and 3% at market
• Multi-factor composite rankings helps us avoid value traps

Together, these measures are designed to support our underlying discipline of buying large-cap, high-quality companies that are attractively valued, have improving fundamentals and have market acceptance of those factors to generate outperformance.

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

• A stock is reviewed for potential sale or position reduction when its P/IV is greater than 1.3x the MSCI ACWI-ex US, the Multi-Factor Composite Ranking falls below the midpoint of 8 or the fundamentals of a company/industry are perceived to have weakened.
• A stock is a mandatory sale when its P/IV exceeds 1.5x the MSCI ACWI ex-US or the Multi-Factor Composite Ranking falls below 6. A stock is also sold immediately if a structural negative is identified or if we become concerned about the integrity of a company's accounting.

The time-valued judgement and more than 30 years of average industry experience of our portfolio managers focuses the inputs of our process with guidance as to which market conditions and research carry more or less importance. While holdings in the portfolio are formally reviewed by our portfolio managers each week, informal discussions take place almost daily and changes are made as needed.

Screening is a bottom-up process that starts with a universe of approximately 7,500 domestic and international stocks. The initial screens identify the stocks that trade on U.S. exchanges with a market cap >$1 billion, minimum internal quality rating of B-, a dividend yield 30% greater than the MSCI ACWI index yield and a positive 5-year dividend growth rate. We also require companies to have both payout and debt/capital ratios ≤ 70%, which fosters stronger dividend growth and reduces the risk of dividend cuts. We then identify a universe of attractively priced stocks using our P/IV calculation; generally this universe is the least expensive third.

Following the P/IV screening, we rank the available universe according to our proprietary Multi-Factor Ranking Model. A stock must have an attractive P/IV to be considered for our portfolio, but we also examine several additional factors. The process combines:

• Valuation
• Fundamental Strength
• Market Recognition

The Multi-Factor Ranking Model assigns each stock a composite ranking score that reflects in a single number all of the factors we believe are most critical to identifying a stock's true future potential. The composite scores allow stocks to be accurately compared, regardless of sector or geography.

Before finalizing a portfolio, we verify each of the model inputs with a thorough fundamental review of each stock. After considering each factor and validating our model inputs, we assemble a portfolio by selecting what we believe are the most attractive stocks that offer the largest potential upside, highest quality, and maximum diversification for our clients.

The strategy’s 30-40 stock portfolio is built from bottom-up, fundamental analysis that includes both domestic and international stocks that trade on US exchanges. We constrain the United States as a percentage of the portfolio to ±10% of the U.S. versus the Rest of World allocation of the ACWI index, but do not impose any other sector or region constraints. It is possible that some sectors may not be represented at a given time. Most of the stocks in the portfolio are assigned a weighting of 1% to 5%. This strategy can be managed according to client investment guidelines, and is measured against the MSCI ACWI.

An experienced portfolio management team, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, is the centerpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of our strategies to limit the risks inherent in stock selection. Our buy-side risk control measures include:

Our buy-side risk control measures include:

• Attractive P/IV
• Dividend yield > ACWI
• High-quality, large-cap portfolio
• Sector and global diversification
• Maximum issue weightings of 5% at cost and 7% at market
• Multi-Factor Composite Ranking helps us avoid value traps

Together, these measures are designed to support our underlying discipline of buying companies with attractive dividend yields, that are attractively valued, have improving fundamentals and have market acceptance of those factors to generate outperformance.

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

• A stock is reviewed for potential sale or position reduction when dividend coverage deteriorates, its P/IV is greater than 1.3x the MSCI ACWI or the fundamentals of a company/industry are perceived to have weakened.
• A stock is a mandatory sale when its dividend yield falls below the MSCI ACWI index yield or its P/IV is greater than 1.5x the MSCI ACWI. A stock is also sold immediately if a structural negative is identified or if we become concerned about the integrity of a company's accounting.

The time-valued judgement and more than 30 years of average industry experience of our portfolio managers focuses the inputs of our process with guidance as to which market conditions and research carry more or less importance. While holdings in the portfolio are formally reviewed by our portfolio managers each week, informal discussions take place almost daily and changes are made as needed.

This product is designed to take emotion out of the decision making process and invest without constraints in the stocks that show the most upside potential. It also provides a unique method of categorizing all the important variables our portfolio management team believes are critical in making a decision to buy or sell a stock.

Screening is a fundamentals-based, bottom-up process that is formalized in the combination of the firm's P/IV philosophy and factor-based stock selection. The process starts with the stocks included in the S&P 500 Index. We can buy the largest cap or smallest cap stocks in that index. The portfolio is also unconstrained in sector selection. We then identify a universe of attractively priced stocks using our P/IV calculation; generally this universe is the least expensive third.

Following the P/IV screening, we score the remaining stocks on each of three factors: financial strength, profitability strength and market acceptance. Each of the inputs is validated in fundamental review of each stock and the top ten companies from each factor sleeve are combined to build the portfolio. The portfolio purchase decisions are based fully on the results of the factor ranking output. Our portfolio managers adhere to the rules-based discipline except where account restrictions or the firm's sell discipline prompt substitutions/sale. The portfolio is rebalanced to 30 equally weighted positions at the start of each quarter.

The preferred benchmark is the Russell 1000 Value, but the S&P 500 is also acceptable.

An experienced portfolio management team having more than 30 years of average industry experience, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, are the centerpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of our strategies to limit the risks inherent in stock selection.

Our buy-side risk control measures include:

• Attractive P/IV
• High-quality portfolio with a bias for large-cap stocks
• Quarterly rebalancing of the portfolio

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

• A stock is reviewed for potential sale or position reduction when it underperforms the Russell 1000 Value by 10% or if it rises into the top third of the universe by valuation.
• A stock is a mandatory sale when it underperforms the Russell 1000 Value by 20%.
• If a stock rises into the top third of the universe by valuation, it is reviewed by the portfolio management team for potential sale.

This product is designed to take emotion out of the decision making process and invest without constraints in the stocks that show the most upside potential. It also provides a unique method of categorizing all the important variables our portfolio management team believes are critical in making a decision to buy or sell a stock.

Screening is a fundamentals-based, bottom-up process that is formalized in the combination of the firm's P/IV philosophy and factor-based stock selection. The screening process starts with a universe of 800 U.S. exchange traded international companies having a market cap >$1 billion and an internal minimum quality rating of B-. The portfolio is unconstrained in sector and region selection, except that US domiciled stocks are excluded. We then identify a universe of attractively priced stocks using our P/IV calculation; generally this universe is the least expensive third.

Following the P/IV screening, we score the remaining stocks on each of three factors: financial strength, profitability strength and market acceptance. Each of the inputs is validated in fundamental review of each stock and the top ten companies from each factor sleeve are combined to build the portfolio. The portfolio purchase decisions are based fully on the results of the factor ranking output. Our portfolio managers adhere to the rules-based discipline except where account restrictions or the firm's sell discipline prompt substitutions/sale. The portfolio is rebalanced to 30 equally weighted positions each quarter.

Quarterly the screening process is utilized to rebalanced the portfolio to 30 equally weighted positions. The strategy is unconstrained with regards to sector and region. Our portfolio managers do not consider sector selection in building the portfolio; portfolio decisions are based fully on the results of the factor ranking output. We do not employ any type of derivative strategies.

The preferred benchmark is the MSCI ACWI ex-US.

An experienced portfolio management team having more than 30 years of average industry experience, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, are the enterpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of ourstrategies to limit the risks inherent in stock selection.

Our buy-side risk control measures include:

• Attractive P/IV
• High-quality portfolio with a bias for large-cap stocks
• Quarterly rebalancing of the portfolio

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

• A stock is reviewed for potential sale or position reduction when it underperforms the MSCI ACWI ex-US by 10% or if it rises into the top third of the universe by valuation.
• A stock is a mandatory sale when it underperforms the MSCI ACWI ex-US by 20%.
• If a stock rises into the top third of the universe by valuation, it is reviewed by the portfolio management team for potential sale.