To see full Investment Grade Brochure click here.

         Cincinnati Asset Management

INVESTMENT GRADE BOND STRATEGY  

   ~      The portfolio management team employs a "Value" strategy. We purchase
         only corporate bonds and seek those that are undervalued. Investment decisions
         made by the management team are based on independent fundamental credit
         analysis, relative value comparisons and yield curve considerations.

 ~      Portfolios are fully invested with an average maturity in the intermediate 
      range. As such, we are "Market Neutral" avoiding interest rate anticipation or
      market timing. Our focus is on the potential future value of individual corporate
      issuers based on potential earnings growth and stability over the long term. 

~       An investment grade (A3/A‑ minimum) average credit rating is maintained.
 BBB/Ba and Baa/BB rated bonds are purchased (to a maximum of 30%) to
 enhance cash flow, reduce interest rate sensitivity, and provide greater potential
 capital appreciation.  In the event of a downgrade, a security may be held if we
 anticipate credit improvement in the future. 

~      The historical low turnover of the portfolio (about 20% per year) is an
 important conservative trait of the strategy and helps to lower imbedded
 transaction costs.

 ~      The conservative nature of the portfolio is improved through a preference for
       more seniority, therefore preferred stocks are not considered as suitable.  Also
       preferreds issued over the past five years generally have terms that
       are unfavorable to the investor. 

~      Portfolios are diversified.  Smaller portfolios contain approximately 20 equally
 weighted positions, while larger portfolios are further diversified.  Industry
 concentration is limited to 30%.

 ~      Illiquid and volatile issues are avoided.  We purchase only larger issue, U. S.
      dollar    denominated, registered public corporate bonds. Neither Zero coupon
      bonds nor preferred stocks are considered. Only North American issuers, or those
      corporations with significant North American assets and operations,
      are considered. 

~      A strict sell discipline is employed.  Issues and issuers are analyzed regularly to
 ensure that gains are captured, relative value is optimized, and capital is
 preserved.

 ~      A Trading Network provides all our clients with excellent pricing.  We
      access over 30 institutional broker/dealers seeking competitive bids and
      offerings; we are constantly searching out the "natural seller/ buyer". 
      The competition among the brokers for bigger trades involving large numbers
      of our clients leads to better prices of 2 to 3 points on average for them. 
      This advantage "pays" for the bond strategy.