Woodley Farra Manion Portfolio Management

Portfolio Characteristics | Stock Selection Process | Decision Making

		Individual Securities Individual securities are exclusively used as investment vehicles Woodley Farra does not manage any mutual funds, nor does it use any funds within our client accounts Each portfolio represents a separate account
		Large Cap Value-Oriented Portfolios contain carefully researched large, well established companies that pay dividends often Our primary objective is competitive returns with a focus on downside risk protection and lower volatility
		Concentrated, Low Turnover Equity Portfolios Client accounts consist of 25-30 stocks Annual portfolio turnover averages approximately 25%
		Strong Dividend Policy While the current economic downturn has caused some businesses to reduce (and in several cases eliminate) dividends, the vast majority of stable companies who pay dividends are continuing this return to stockholders. Dividend yields still provide an objective characteristic of undervalued companies and are a significant contributor to the total return of a portfolio Past studies and actual experience show that higher dividends can provide stability in declining markets Client portfolios also will have a good inflation hedge through any annual dividend increases that have historically occurred in many Woodley Farra stocks

		Screening Process Our stock selection process begins with a universe of over 11,000 companies. We examine each of these stocks, running them through specific, proprietary screens to help us determine whether a stock is statistically inexpensive. The results usually narrow the choices to a list of 300-550 securities.
		Individual Stock Selection Process After the initial screening, we apply a 4-step process to further reduce the list of potential holdings to the final 25-30 that are included in a portfolio. Start Screen over 11,000 stocks (300 – 550 stocks pass initial screening) Execute Four Step Stock Selection Process Fundamental – Complete analysis of company's financial and competitive health Quantitative – Analyze company's stock valuation utilizing several proprietary formulas Technical – Identify trends in supply and demand and measure them to the stock in review Economic – Analyze current economic conditions and their potential effect on company's stock price Finish Final Portfolio (25 - 30 Stocks) Our sell discipline, is based on the opposite characteristics that indicate it is time to buy a stock.

		Team Driven Portfolio decisions for all our clients are made as a team, with each investment professional contributing to the process The team occupies an open office area, which facilitates communication and teamwork
		Proprietary, In House Research All research is completed by Woodley Farra personnel, using raw investment data We do not rely on third party opinions, nor do we necessarily subscribe to Wall Street predictions