General Investment Philosophy

At the center of Wright’s investment process is the Wright Investment Committee. It consists of a select group of senior investment professionals who are supported by an extensive staff. This staff provides multilevel analyses of the economic and investment environments, including actual and projected corporate earnings, interest rates, and the effect of economic forecasts on market sectors, individual securities and client portfolios.

Equity Portfolios
Wright’s goal is to achieve portfolio returns satisfactory to clients by blending quantitative, analytical and qualitative approaches into the security selection process while avoiding excessive risk. Quantitative screening of over 20,000 companies in the Worldscope® database creates an investable universe of approximately 700 companies with superior earnings growth and financial strength. Analytical overlays utilize competitive advantage comparisons to determine which of the 700 companies have the best growth potential in their respective industries. Finally, qualitative analysis built on macroeconomic input identifies which industries Wright expects to create superior value for shareholders.

Fixed Income Portfolios
Wright’s objective in active fixed income management is a superior rate of total return of income and principal. Each fixed income portfolio is diversified among a variety of investment-quality fixed income securities. Since Wright’s primary mission is to preserve client capital, high-yield (junk) or derivative securities are not included in our fixed income portfolios. To enhance fixed income returns, Wright employs strategic structuring of portfolio duration in anticipation of changes in interest rate trends and makes asset allocations among market sectors based on relative attractiveness. Wright invests portfolios primarily in U.S. Treasury and Agency issues, investment-grade U.S. corporate issues and mortgage-backed securities covering a wide range of maturities. To determine portfolio maturity and duration, clients may rely on Wright to use its outlook for economic conditions and interest rate trends, or alternatively, clients may impose their own specific guidelines. Wright designs fixed income portfolios to perform against a wide variety of client benchmarks, and to meet very specific client requirements.

Unrestricted Bond Management
Average maturity of portfolios or single issues is not limited. The applicable benchmarks are: Lehman Aggregate Bond Index, Merrill Lynch (Broad Investment Grade) Index, Lehman Government Composite Index, Lehman Government/Corporate Composite Index.

Intermediate Bond Management
Average portfolio maturity will range from 2-6 years. Maturity limit for single issues is 10 years. The applicable benchmarks are: Lehman Government Intermediate Index, Lehman Government/Corporate Intermediate Index.

Short Term Bond Management
Average portfolio maturity will range anywhere from 1-3 years. Maturity limit for single issues is 5 years. The applicable benchmarks are: Merrill Lynch 1-3 Year Index, Lehman Government 1-3 Year Index.

Balanced Portfolios
Wright’s approach is to invest over a long-term horizon in high-quality stocks and investment-grade bonds. Depending upon client circumstances and objectives, portfolio allocations to equities, bonds and cash are determined in accordance with expected returns and volatility associated with each asset class. Changes in allocations tend to be gradual and within the scope of a long-term investment program. Ultimate responsibility for asset allocation rests with the Wright Investment Committee. The Committee reviews economic forecasts and projected stock and bond return and risk pairings prepared by Wright’s economics, equity and fixed-income departments.