The International Intrinsic Value strategy is fundamentals-based and 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 a minimum internal quality rating of B-. We then identify a universe of attractively priced stocks using our Price/Intrinsic Value calculation; this universe is generally 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 factors of:

• 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 future potential. Composite Ranking Scores allow stocks to be accurately compared on a level playing field, regardless of sector or geographic location.

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

The portfolio holds, on average, 55-70 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. All major sectors of the ACWI ex-US are represented, but we may choose not to participate in sectors representing less than 3% of the index. 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 disciplined processes to limit the risks inherent in stock selection.

Our sell discipline is 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 Multi-Factor Composite Ranking Score 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 or the Multi-Factor Composite Ranking Score falls below 6. A stock is also sold immediately if a structural negative is identified or we become concerned about the integrity of a company's accounting.

A declining Composite Ranking Score can be caused by overvaluation, weak fundamentals, or poor market recognition, and will prompt further fundamental review of a stock with an eye towards reducing or eliminating the position to reduce the risk of underperformance.

Risk management is also a significant part of our investment process since it is managed by the rules and processes used to develop the portfolio.

Process related risk control measures include:

• Attractive P/IV
• High-quality, large-cap portfolio
• Broadly diversified portfolio of 55-70 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 portfolio managers average decades of industry experience, which we believe brings insight into the evaluation of market conditions and broadens the quality of research feeding our investment process. 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.

The Global Intrinsic Value Equity Income strategy is fundamentals-based and bottom-up in nature. 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 and minimum internal quality rating of B-. Additional screens support the strategy’s current income objective. Stocks are required to have a dividend yield 30% greater than the MSCI ACWI index yield, a positive 5-year dividend growth rate, and both payout and debt/capital ratios ≤ 70%, which fosters stronger dividend growth and reduces the risk of dividend cuts. Lastly, we identify a universe of attractively priced stocks using our P/IV calculation; this universe is generally the least expensive third.

Following the P/IV screening, we rank the available universe of about 250 stocks 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 factors of:

• 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 Ranking Scores allow stocks to be accurately compared on a level playing field, 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 validating our model inputs, we assemble a portfolio by selecting stocks we believe offer the largest potential upside, highest quality, and maximum diversification for our clients.

The strategy’s 30-40 stock portfolio includes domestic stocks and international stocks that trade on U.S. 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. 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 disciplined processes to limit the risks inherent in stock selection.

Our sell discipline is 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 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. 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.

A declining Composite Ranking Score can be caused by overvaluation, weak fundamentals, or poor market recognition, and will prompt further fundamental review of a stock with an eye towards reducing or eliminating the position to reduce the risk of underperformance.

Risk management is also a significant part of our investment process since it is managed by the rules and processes used to develop the portfolio.

Process related risk control measures include:

• Attractive P/IV
• Dividend yield > ACWI
• High-quality, large-cap portfolio
• Economic sector and region 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 portfolio managers average decades of industry experience, which we believe brings insight into the evaluation of market conditions and broadens the quality of research feeding our investment process. 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 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 the index and there is no minimum internal quality rating requirement. We then identify a universe of attractively priced stocks using our P/IV calculation; this universe is generally the least expensive third.

Following the P/IV screening, we score the remaining universe of about 175 stocks on each of three factors: financial strength, profitability strength and market recognition. Each of the inputs is validated in a fundamental review of each stock and the top ten companies from each factor sleeve are combined to build the portfolio. This process removes emotion from the decision-making process and builds a portfolio of stocks we believe have the most upside potential, without constraints.

Before finalizing a portfolio, we verify each of the factor inputs with a thorough fundamental review of each stock. After validating the inputs, 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 quarterly to 30 equal-weighted positions using this process.

The strategy’s portfolio includes only S&P 500 stocks and is unconstrained by sector selection. The preferred benchmark is the Russell 1000 Value, but the S&P 500 is also acceptable. As rebalancing often results in annual turnover of more than 100%, this strategy is most attractive as a tax-exempt investment.

An experienced portfolio management team with 35+ average years of experience, 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 disciplined processes to limit the risks inherent in stock selection.

Our sell discipline is 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%.

Risk management is also a significant part of our investment process since it is managed by the rules and processes used to develop the portfolio.

Process related risk control measures include:

• Attractive P/IV
• High-quality portfolio of large-cap S&P 500 stocks
• Quarterly rebalancing of the portfolio

While this strategy is fully rules-based it is supported by the same disciplined fundamental analysis, verified factor-based foundation and experienced portfolio management team that supports all of the firm’s intrinsic value strategies.

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 U.S. domiciled stocks are excluded. We then identify a universe of attractively priced stocks using our P/IV calculation; this universe is generally the least expensive third.

Following the P/IV screening, we score the remaining universe of about 250 stocks on each of three factors: financial strength, profitability strength and market recognition. 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. This process takes emotion out of the decision-making process and builds a portfolio of stocks we believe have the most upside potential, without constraints.

Before finalizing a portfolio, we verify each of the factor inputs with a thorough fundamental review of each stock. After validating the inputs, 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 quarterly to 30 equally weighted positions using this process. As rebalancing often results in annual turnover of more than 100%, this strategy is most attractive as a tax-exempt investment.

An experienced portfolio management team with 35+ 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 disciplined processes to limit the risks inherent in stock selection.

Our sell discipline is 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%.

Risk management is also a significant part of our investment process since it is managed by the rules and processes used to develop the portfolio.

Process related risk control measures include:

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

While this strategy is fully rules-based, it is supported by the same disciplined fundamentals, verified factor-based foundation and experience portfolio management team that supports all of the firm’s intrinsic value strategies.