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Cincinnati Asset Management, Inc. 

HIGH YIELD BOND STRATEGY

 ~       The key to our long-term over-performance is a more conservative strategy that 
       focuses on total return and the minimization of downside in down markets.  CAM
       stresses asset quality and yield relationship - not just yield.  The same discipline is
       employed in our value style to high yield bond portfolio management as investment
       grade portfolio management (only North American bonds, industry exposure and
       portfolio diversification). 

~       CAM buys high yield bonds in the highest two categories of non-investment grade
             debt; we do not buy bonds lower than B-/B3.  Average credit is B/B2, and average
              maturities are 6 years. 

~       Preservation of Capital is considered essential to the objective of the portfolio,
              which is total return over a full market/economic cycle.  It is old investment wisdom that it
              is far easier and safer to beat the "averages" by striving to preserve capital in down
             markets than by outperforming in up markets.  (We may hold a security that is
             downgraded if we anticipate future credit and price improvement.)

~     The historical low turnover of the portfolio (about 33% per year) is an
              important conservative trait of the strategy and helps to lower imbedded transaction
              costs.  Securities selected are those which we feel have the best prospects for
              significant performance over the next 3-5 years.  (Morningstar reports (1/6/03) the
              turnover of the average of High-yield Bond Fund is 103%.  This turnover hides the
              additional cost of bid/ask spreads on buys and sells.)

~       A Bottom-up Approach identifies investment opportunities that represent the
             most attractive value and with strong prospects for consistent income and growth. 
             We believe that this is a more conservative and constructive approach than
             "top-down" approaches that attempt to time the markets and bet on the continually
             elusive direction of interest rates.

~       Continual Research of issues is conducted by the team of portfolio managers. 
              The value investing approach demands regular rigorous credit and industry analysis
              to identify issues that are overvalued and those that should be sold to reinvest
              in better opportunities.

~       Only North American Companies are considered as potential investments. 
              There are many opportunities "at home" in markets we know better than far away
              foreign countries that appear to be fraught with problems.

~       A Primary Focus on Established Companies is a key conservative element. 
             For the most part, we avoid new companies or "start-ups" like the new
             telecommunication and internet companies.  They lack a track record by which future
             potential can be estimated, their competitive mettle has yet to be tested and consumer
             acceptance of their new and possibly untried products an unknown.

~       Diversification is across more than 30 issues, which means your investment
              is not dependent upon the performance of a few companies.  Additionally, the
              managers strive to reduce risk by investing not more than about 10% in any single
              industry group.

~       The Intermediate Range Average Maturity of the Fund lowers the interest
              rate risk associated with bonds. Generally, the longer the maturity, the greater
              the risk.  We maintain an average maturity of less than ten years.

~       Liquidity and Safety are Enhanced by investing in only bonds with an initial
              issue size of $100,000,000.  We avoid smaller issues that are generally more
              illiquid.  Full-coupon, Cash-paying Securities are Preferred for their cash flow
              advantage and their usually lower volatility than deferred interest or zero coupon bonds.