Investment Management

* Asset Allocation Analysis

* Equities Management

- Third Party “Manager of Managers” approach
- Multiple capitalization ranges using both value and growth styles
- Domestic and international equities
- Favor the use of individual securities where possible for efficient tax management

*Fixed Income Management

- Favor intermediate term portfolios with higher quality (AA or better) bonds
- Employ basic, low-risk strategies such as “laddering” or “bar bell” approaches
- Buy individual bonds with fixed maturity dates as opposed to bond funds
- Either taxable bonds or tax-exempt municipal bonds will be used depending on the
- tax bracket or status of the customer

*Money Market Funds

- Taxable money market fund is Triple A rated by three or more rating agencies and NAIC - -- approved
- Pennsylvania Tax-Exempt Money Market Fund uses only high rated, short-term - - - - - - - - municipal securities
- No 12b-1 fees or swap fees are taken by Smithfield Trust Company, thus providing - - - - - - higher short-term yields

*Alternative or Nontraditional Investments

- Private Equity and Venture Capital opportunities provided through Smithfield - - - - - - - - - - Equity Associates
- Managed commodities futures
- Long/short domestic equity hedge fund and technology sector hedge fund
- Distressed debt partnership
- Oil and Gas drilling ventures