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We believe that, over time, value equity portfolios will provide superior performance. However, we also believe that eliminating growth allocations will result in interim divergence from the broad markets that our clients would find unacceptable. We believe a 60% weighting for value and 40% for growth is the most appropriate weighting to balance these conflicting issues.

We believe that the choice between active and passive management is not either/or. We use both. In general, we believe that our value portfolios should be passively managed and our growth portfolios actively managed.

We believe that the portfolio policy is a significant determinant of long-term portfolio performance. Because we believe in the overriding importance of the strategic allocation, we reject managers who do not have clearly defined philosophies or who diverge from their stated policies. Because we do not believe in market timing, we reject sector managers but surely participate in systematic sector allocations. We believe in maintaining a strategic allocation and only infrequently revise that allocation.

We believe that professional money managers will generate results far superior to a client's or wealth manager's direct security selection and management. With rare exception, separate account management is inefficient and expensive. The universe of public and institutional funds offers the best alternative for the superior management of multiple asset class portfolios.