Large Cap Core

Equity and Balanced Account Management

Objective
Large Cap Core Equity seeks to provide competitive long-term returns by investing in large capitalization stocks that are well-diversified across economic sectors. Stock selection is based on a growth-at-a-reasonable price methodology. Portfolios are designed to be consistent with each clientês social concerns and objectives. The equity benchmark is the S&P 500.

Investment Process
The investment process begins with asset and sector allocation based on economic outlook, benchmark allocation and risk/return expectations for each sector. Within sector guidelines, Large Cap Core Equity seeks large capitalization stocks with superior earnings growth prospects, but which are available at a reasonable price.

Financial analysis is based on multi-factor valuation and risk modelings, as well as in-house fundamental research, including balance sheet and income statement analysis. The Investment Management Committee, comprised of all portfolio managers and analysts, meets weekly to review fundamentals, monitor valuation, and approve buy and sell decisions. Technical analysis is used to monitor stock price movements and help determine entry and exit points. The stock selection process emphasizes companies making a positive contribution to society and the economy; however, no stock is added to the buy list without rigorous financial analysis that reveals superior investment attractiveness. Internal risk controls include limiting exposure to any single issuer to no more than 5% of total portfolio value, and using a proprietary process to reduce variability with the S&P 500 benchmark and across portfolios. Careful attention is paid to short- and long-term tax effects, to maximize after-tax returns.

Sell Discipline
Sell discipline is governed by portfolio strategy and stock-specific analysis; securities may be sold because of a top-down change in asset or sector allocation guidelines, or due to a negative change in fundamentals or excessive relative valuation.

Social Strategy
Investments are carefully tailored to reflect each client’s social concerns, which most frequently include the environment, human rights, workplace diversity, labor rights, non-proliferation of weapons, product safety, community development, and animal welfare. Stock selection process emphasizes companies making a positive contribution to society and economy. Large Cap Core Equity includes a focus on improving corporate practices through one of the most powerful forms of leverage: active stock ownership. On behalf of clients, the firm engages in dialogue with management on critical social issues and participates in the proxy resolution process, with a focus on complex issues related to the environment and global human rights.

Balanced Account Options
Tax-exempt balanced accounts combine tailored investment grade corporate and government agency bonds with Large Cap Core Equity. Tax-sensitive balanced accounts combine tailored investment grade municipal bonds with Large Cap Core Equity. A range of asset allocations (from conservative to aggressive) is available.

Largest Holdings
(as of 9/30/08)

• Chubb
• Johnson & Johnson
• IBM
• Procter & Gamble
• Hewlett Packard
• General Mills
• Pepsico
• BP, p.l.c.
• 3M
• Apache