Investment Philosophy

We are committed to achieving or exceeding each client specific goals and objectives. We can achieve these client goals by blending the skills of our professionals to produce sound and effective investment programs. In managing equity portfolios, we believe that secure, proven companies with quantifiable long-term growth potential offer the best opportunity to maximize shareholder value.

Equity Investment Philosophy

Presque Isle Capital Management utilizes an equity style of growth with value overlay as the main investment approach toward stock selection. The company's primary goal is the development and implementation of a quality portfolio to achieve long-term capital growth that meets the client objectives. The investment philosophy evolves around the achievement of an above average return through proper portfolio balance of equity securities that meet earnings growth criteria.

Presque Isle Capital Management has the ability and experience to manage portfolios with varying investment objectives and does so for specific situations with specific clients. The above described growth style is the primary and only equity product offered in our normal course of business.

Fixed Income Investment Philosophy

While debt instruments of intermediate maturities are our primary emphasis, the formulation of our fixed income strategy begins through a determination of interest rate trends. Portfolio adjustments are then processed to achieve maximum total return. Extension or retraction of maturity duration begins only after a thorough evaluation of spreads between quality issuers, market sectors and yield curves. Our emphasis is on notes and bonds of the highest quality where the financial strength of the guarantor is well documented by major rating services. Portfolio exposure to notes and bonds will vary relative to assessment of current market environment and investment guidelines.



Investment Management Analysis and Strategy

1. We utilize a flexible investment style, one which develops through an appraisal of our clients' investment objectives, expectations, risk tolerance and unique needs.
   
   
2. Our primary goal is the development and implementation of a portfolio to achieve long-term growth of capital through quality investments.
   
   
3. Secondary objectives tailored to current needs of a client will be fulfilled by utilization of appropriate securities.
   
   
4. Once a clear understanding of the appropriate investment strategy has been achieved, the product we deliver is the decision-making required to construct the proper portfolio to produce desired objectives.
   
   
5. Equity exposure may vary between 0% and 70% of a portfolio depending on our valuation assessment. The formulation of a fixed income strategy begins through a determination of interest rate trends, and a portfolio exposure with appropriate fixed income securities may range between 30% and 100% of the total portfolio.
   
   
6. Our emphasis at PICM is to maintain fully invested positions in the debt and equity markets. However, during periods of uncertainty we may give heavier weighting to money market instruments.
   
7. We emphasize quality and long-term growth in the implementation of our strategy, while using fundamental and technical analysis to seek opportunities for profitable investments.

Selection Process

Equity Selection

To achieve long-term growth of capital within the equity portfolios, our emphasis is on the common stock of companies with a demonstrated and anticipated record of above average growth. Our focus is toward market leaders with a strong financial position, favorable valuation, and participation within growing industries.

Purchase Candidates

· Database of listed NYSE, AMEX and NASDAQ companies

5000
Stocks

· The PICM Universe of Companies Growing at Above Average Rate

1000
Stocks

· Quantitative Factors i.e., Low P/E, High Return On Equity, Low Debt, Dividend Payout

200
Stocks

· The PICM Managers Apply Qualitative Fundamental Analysis

50-75
Stocks

· Appropriate Stock Selection To Achieve Capital Growth

Client
Equity
Portfolio

Fixed Income Selection

To ensure the constant and desired cash flow generation of managed portfolios, we utilize high quality notes and bonds as our investment security selections. A determination of taxable or tax-free securities for usage is made in accordance with our expectations for interest rate trends. Our focus is toward intermediate maturities to maintain flexibility and to minimize portfolio volatility.

Buy Process

· Cash Flow Needs Capital Preservation, Asset Balance,Stability

PortfolioObjective

· Highest Quality, Sectors,Municipals, Government

SecuritySelection

· Interest Rate Forecast, Low Volatility, Laddered Maturities,Maximize Yield Within Duration

Duration

· Appropriate Bond Selection ToAchieve Income And Capital Preservation Needs

Client Fixed Income Portfolio

Insurance products offered through HBK Sorce Insurance LLC
Investment Advisory Services offered through HBK Sorce Advisory LLC
Securities offered through Securities America, Inc., Member NASD/SIPC
HBK Sorce Financial LLC and its subsidiaries are not affiliated with Securities America, Inc.
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