Starmont analyzes your integrated investment portfolio and then meets with you to discuss and agree upon a strategy that will accomplish your Starmont Objective. That strategy may involve changing your asset allocation, the use of active and/or passive investment management and/or the use of nontraditional (“alternative”) investments—all within a tax-efficient framework. When agreement is reached, this becomes your neutral asset allocation, and Starmont implements the strategy.

Single Integrated Portfolio

STARMONT’S ACTIVE MANAGER SELECTION PROCESS

• – For active management of specific investments, we focus primarily on no-load, institutional-class mutual funds
• – We have developed effective techniques for selecting best-of-breed managers
• – Our selection criteria include:
• – Consistency of returns in up and down markets
  • – Manager experience and continuity
  • – Below-average costs, relative to similar mutual funds
  • – Top quintile (20%) ranking among peer group managers
  • – Performance consistently above fund benchmark over time

The ability to evaluate and select investment managers that have consistently produced successful results is a core
strength of our firm.

OUR APPROACH TO “ALTERNATIVES”

• – We recognize that global investment markets experience changing cycles and phases
• – Over the past decade, stock returns have fallen below their long-term averages
• – Over the coming decade, bonds may produce below-average returns as interest rates rise
• – We are evaluating investment strategies that can help Clients pursue their objectives with
  diversification and portfolio stability, including:
• • – Specialized separate account managers
  • – Commodities/natural resources funds
  • – Funds that hedge stock market risk
  • – Each “alternative idea” undergoes in-depth due diligence before it is implemented