Performance Summary - Relative Value Equity

Todd Outperforms S&P 500 and Russell 1000 Value During First Quarter*

Our model portfolio outperformed the S&P 500 and Russell 1000 Value Indices during the quarter. We modestly beat the S&P 500 and significantly outperformed the Russell 1000 Value. The S&P 500 returned -11.01% and the Russell 1000 Value returned -16.77%. Our Relative Value Equity composite returned -10.58 gross and -10.72% net. We believe the value index is likely to underperform the S&P 500 for some time to come as investors find earnings growth hard to come by. Our outperformance came despite the fact that we favor large cap, attractively valued stocks in a period when those factors contributed to underperformance.

We have had overweightings versus the S&P 500 in the Technology and Industrial sectors and below market weightings in the Financials. We changed some of our Financial holdings during March to bring the portfolio to a market weighting versus the S&P 500. With the 76% surge in Financials since March 6, we are modestly underweighted again right now as the names that recovered the best were the most speculative ones rebounding off of the bottom. We expect to do more changes within the Financial sector during the upcoming quarter.

Our overweighting in Industrials did not help us during the entire quarter but helped us during the rally off the March 6 bottom. We are starting to look at Consumer Discretionary names. If the economy does rebound, this group will probably be part of the leadership as it has in the past.

We found that stock selection helped our results in the Consumer Discretionary, Energy, Industrials, and Materials sectors. Stock selection in the Financials detracted from our performance.

*Sources: Bloomberg, Russell

Historical performance provides no guarantee of future success.¹ Additional information is shown on our Relative Value Equity Flyer.

Annualized Performance as of 3/31/09

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¹Past performance is not indicative of future results. A full performance disclosure is an integral part of this presentation. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using the highest management fee of 0.60% applied monthly. Prior to September 2001, the highest management fee applied to the composite was 0.50%.

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