The Oakwood Difference

What to Expect as a Client

All clients receive institutional-quality investment management and the highest level of personal service.

We begin by assisting in developing your investment objectives. Of primary importance is establishing your particular risk tolerance - that critical tradeoff between the desire for high returns and the need to preserve capital. Your income needs, liquidity requirements and tax situation are also assessed.

Next, your existing holdings are evaluated to determine if they meet your investment objectives. Portfolio adjustments are made as necessary to better meet those objectives and to take advantage of marketplace opportunities.

We make your Oakwood transition as easy as possible, taking into consideration any special concerns you may have. We facilitate communication through frequent telephone conversations and face-to-face meetings. In addition, we keep you apprised of your account activity and market developments through quarterly reports and periodic bulletins.

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The Oakwood Capital Management Investment Process

The time-tested investment methodology we use to tailor your portfolio to your specific needs is based on extensive quantitative methods and sound research. In managing your assets, we continually strive to meet your stated objectives. Our overall goal is to attain above-market returns at below-market risk.

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Investment Policies

• All investment professionals share in setting investment policy.
• Both fundamental and quantitative disciplines are used to identify attractive securities.
• Diversification is achieved by including a broad number of issues in each portfolio.
• Portfolios are continuously monitored; adjustments are made in anticipation of and in response to specific events or fundamental changes in the marketplace.
• Sell disciplines are an integral part of our investment process.

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Equity Portfolios

Our disciplined equity investing approach begins with understanding your objectives. Together, we assess your risk tolerance, investment time horizon and other circumstances affecting equity selection. These unique characteristics are then woven into our stock selection process as we seek to outperform your pre-selected benchmarks through optimal diversification and active management.

Equity selection begins "top down" with the Investment Policy Committee closely examining "macro" factors affecting the capital markets.

Next, "bottom-up" security selection utilizes quantitative screens to narrow the broad universe of securities into attractive portfolio candidates based upon traditional value measures. Securities offering value on both an absolute and relative basis are subjected to rigorous analysis as to their growth potential and fundamental appeal. The most attractive candidates are placed in your portfolio, consistent with previously established risk control and return criteria.

Every security placed in your portfolio is assigned a price target. As these targets are reached the stock is re-evaluated and the target is either changed or the issue is sold.

We stay substantially fully invested in most market environments, depending upon your liquidity needs.

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Fixed-Income Portfolios

We offer both taxable and tax-free portfolio management.

Our active-management approach is designed to accept only the amount of risk necessary to achieve your goals. Our mission is to produce excellent relative performance in all interest rate environments. Risk is managed by using only investment grade securities and by employing rigorous sell disciplines to preserve market value.

We begin by establishing a portfolio framework based on specific risk parameters: acceptable quality standards, maturity constraints, income requirements and return expectations. This leads to selection of an appropriate benchmark, which provides the basis for both volatility and return testing.

Using fundamental and technical research, we identify candidates designed to:

• protect market value
• reduce volatility
• improve quality levels
• generate attractive returns

Through extensive computer modeling we match return expectations to your goals. Actual structuring or re-structuring of your portfolio is the final step in the process.

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How Can We Serve You?

We are committed to providing outstanding investment management. Even as we continually add state-of-the-art technological resources and work to improve our professional expertise, the one constant at Oakwood is our passion for client service.

Oakwood strongly believes in the traditions of effective communication, understanding your needs as a client, courtesy and responsiveness. We welcome the opportunity to serve you and hope to have you as a client for many years to come.

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Performance from Professionals

Generally, the result for our clients is outstanding investment performance in all market environments. The long-term track record of our portfolio managers shows that over the years, annualized performance has usually equaled or exceeded such standard performance benchmarks as the Standard and Poors 500 common stock index and Lehman Brothers Government/Corporate bond index.

While this performance results from the meticulous, carefully crafted investment process our portfolio managers have developed, it also reflects the quality of our investment staff, their expertise and experience.

Members of our senior team hold multiple degrees and recognized professional credentials. Most also have the advantage of having worked together as a team for 10 years or more.

As seasoned veterans of several business cycles, spanning both up and down markets, Oakwood investment professionals are able to make sound decisions about your portfolio with wisdom and confidence.

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