Proper portfolio construction requires - among other things - multiple asset classes and geographic diversification.

As a result, we hire sub-advisors, with expertise in particular areas, to manage various asset classes.  You benefit in several ways from this type of strategy:

1) In any one firm, research and ideas are shared among managers and a "group philosophy" becomes inevitable.  Manager diversification reduces this risk.

2) It is not necessary to have all of the required expertise in-house to manage all asset classes.  Specialists in each area become part of our team.

3) In-house management results in the issue of objectivity - how do you fire yourself?  Not only is it difficult to relieve internal managers, but the systems and processes under which they managed (or lack thereof), remain.

4) With multiple managers, you have access to the resources of several large, global managers while still receiving the personal, custom service of a boutique.

We do not claim to hire the "best" managers in each asset class. Instead, we search for managers that are excellent at doing what we ask them to do - and excellence means:

• Commitment to their mandate (no style drift).
• The discipline to adhere to a proven strategy.
• Consistent performance and remaining focused on long-term objectives.

Simply put, we hire managers that fit our processes and philosophy.