Ryan Labs Asset Management:                                                                                                                  Enhanced Fixed Income Strategies Versus Market Benchmarks

Ryan Labs' investment philosophy is to meet our client's objectives with the least amount of relative risk and relative cost. Ryan Labs believes that this is best accomplished through a structured portfolio that is interest rate neutral relative to the benchmark, adding value through issue selection and sector rotation. Since Ryan Labs does not predict interest rates, we look for bonds whose spreads can widen and still beat the equivalent yield curve over all interest rate scenarios. Within the Ryan Labs term structure neutral approach we seek to capture additional return through yield curve analysis, issue selection and sector rotation.

Ryan Labs seeks to add value through issue selection and sector rotation only. We do not anticipate the direction of interest rates. Therefore, all of our portfolios are duration neutral versus their benchmark within a band of +/- .5 years or tighter.

The benefit of this approach is lower risk and higher return. Higher return is achieved through out-yielding the index, choosing better sectors and issues, and capturing the positive roll of the yield curve.

We start with a top-down approach by analyzing the economics of the market and sectors that we want to over and under weight. We then apply a bottom up approach to the underlying fundamentals of the actual securities.

Our qualitative approach includes a thorough fundamental credit analysis. The analysis is focused on avoiding large draw downs on specific issuers when spreads are tight and create a strong fundamental basis for adding new names when markets are less liquid and technical considerations create opportunities.