Performance Summary - Relative Value Equity

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

Our model portfolio slightly outperformed the S&P 500 and Russell 1000 Value Indices during the quarter. The S&P 500 returned -2.73% with the worst June returns in almost 80 years. The Russell 1000 Value returned -5.31% as concerns over the Financials impacted returns. Our Relative Value Equity composite returned -0.56 gross and -0.71% net.

Energy, Utilities, Materials, and Technology stocks were the best performers this quarter as those sectors showed positive results. Energy stocks rose 17% during the quarter. Financials and Industrials were the worst performers. Financials declined by 18%. We found that stock selection helped our performance the most versus both the S&P 500 and the Russell 1000 Value.

We remain underweight in Financials versus the Russell 1000 Value and are nearly equal with the S&P 500. We are overweight in the Technology and Industrials stocks against both benchmarks. Our stock selection generally helped performance in each of these sectors, though the overweighting in Industrials detracted from performance versus the S&P 500.

The themes we continue to capitalize on include the impact of higher energy prices, an export-led economy, and a focus on companies that are delivering upside earnings surprises. The Industrial and Technology stocks are large exporters and a lower dollar makes them much more competitive. We are concerned about the economy because of oil prices but are undecided on whether oil prices have peaked. Stay tuned for more on that.

*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 6/30/08

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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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