Fixed Income Investment Philosophy

• We are active managers of investment grade quality fixed income portfolios. Active management enables us to respond to market changes and reposition our clients’ portfolios to maximize return relative to risk.

• We begin the portfolio construction process with a “top down” view of the fixed income environment. Our analysis of the overall macroeconomic environment enables us to pinpoint those sectors and maturity structures which represent the best investment opportunity.

• We utilize a “bottom up” approach to select specific securities for clients’ fixed income portfolios. We systematically analyze the relative value of specific issuers within each sector in the context of our economic outlook. We then select only those bonds that provide the best value on the risk/reward continuum.

• We invest only in quality securities. Haverford’s Quality Investing approach focuses exclusively on investment grade issues. We aim to preserve and protect our clients’ principal while also producing a stable income stream. Haverford uses rating agencies as just one indicator of creditworthiness. We employ fundamental analysis and monitor market prices as a parallel system to evaluate financial strength of issuers.

• We customize each portfolio. Haverford separately managed accounts provide customized solutions to match each investor’s objectives, risk tolerance, liquidity requirements and marginal tax rate to optimize the benefits from the individual portfolios we create. Our active management style allows us to adjust the portfolio as needed based on a client’s changing needs.

• We keep transaction costs low. Our close ties to a network of national and regional institutional dealers, combined with our practice of aggregating bond purchases across multiple accounts, serves to reduce transaction costs.