Growth & Value 20 Equity Strategy and Portfolio

Performance Objective:
To provide, over the life of the strategy and over every three-year period, a net-of-fee investment return superior to that of the S&P 500 Index.

Investment Philosophy:
Growth & Value 20 was developed around the following beliefs:

Key to success – disciplined stock selection processes
Consistent success – combining independently managed Growth and Value groups of large capitalization common stocks
Periods of above-average stock market risk have certain recognizable characteristics; the portfolio’s more vulnerable Growth group should be replaced by intermediate Treasuries during these periods

Portfolio Structure:
The Growth & Value 20 portfolio typically consists of 20 stocks representing three independent groups:

LARGCAP Value - Yield Group	Selected from the 75-candidate Nottinghill LARGCAP Universe on the basis of high-dividend yield supported by two measures of corporate profitability.
LARGCAP Value - Contrarian Group	Selected from the Nottinghill LARGCAP Universe on the basis of long-term underperformance with favorable turnaround prospects.
S&P Growth - Momentum Group	Selected from the entire S&P 500 on the basis of superior corporate earnings and stock-price momentum.

Investment Process:
Growth & Value 20 is a Core equity strategy in which three independent, quantitative selection processes are used to select three specific groups of stocks. Two processes are value-oriented and are applied exclusively to the Nottinghill LARGCAP Universe--75 companies/stocks with an average market cap exceeding $30 billion. The third process is growth-oriented, and is applied to the entire S&P 500. During periods of above-average risk, intermediate Treasuries are held instead of this third, more growth-oriented group of stocks. The result of utilizing independent, contrasting selection processes is a more consistent pattern of superior returns.

Investment Results:

	G&V 20*		S&P 500 Index		Firm Assets		Composite Portfolios	Composite Assets		% of Firm Assets		Annual Composite Dispersion

1997	26.03		33.36	%	$15.1	mm	8	$5.2	mm	34	%	0.32	%
1998	18.26		28.58		23.4		9	6.8		29		1.42
1999	14.97		21.04		31.7		10	9.8		31		0.53
2000	5.09		-9.10		27.0		12	12.5		46		1.02
2001	0.29		-11.89		31.5		13	13.5		43		0.75
2002	-17.17		-22..10		36.1		15	17.9		50		0.46
2003	37.22		28.68		57.7		16	22.5		39		1.03
2004	18.44		10.88		70.8		20	26.7		38		0.62
2005	11.10		4.91		123.1		37	72.1		59		0.88
2006	18.23		15.80		162.3		40	97.8		60		0.79
2007	-6.38		5.49		162.5		64	103.3		64		0.48

Annualized
1997-2007	10.49	%	8.15	%

2003-2007	14.85	%	12.83	%
2005-2007	7.14	%	8.62	%

* Net-of-fee

Nottinghill Investment Advisers, Ltd., has prepared and presented this report in compliance with the Performance Presentation Standards of the Association for Investment Management and Research (AIMR-PPSTM) for the period from July 1, 1996 to December 31, 2005 and the Global Investment Performance Standards (GIPSR) beginning in 2006. No regulatory or governing body has been involved in the preparation or review of this report.
1. Nottinghill Investment Advisers, Ltd., (“Firm”) is an independent, SEC-registered investment adviser utilizing a number of primarily large capitalization equity investment strategies. Berge & Company, Ltd. and BKD, LLP, Certified Public Accountants in each case, completed Firm-wide Verifications of Nottinghill’s compliance with the AIMR-PPSTM for, respectively, the 1996-2001 and 2002-2005 periods. The Verifications associated with years after 2005 also were completed by BKD, LLP, and tested Nottinghill’s compliance with the aforementioned Global Investment Performance Standards (GIPSR). Verifications are conducted annually; a copy of the most recent report is available by request.
2. The Growth 10 performance composite (Composite A: all non-wrap fee accounts and those with a fixed annual broker charge less than 0.25% of assets) officially was created on January 1, 2002; however, the composite as currently defined has an effective date of compliance with the AIMR-PPSTM of July 1, 1999. Berge & Company, Ltd. and BKD, LLP, Certified Public Accountants in each case, completed Performance Examinations of the investment results presented for, respectively, the 1999-2001 and 2002-2006 periods. On December 31, 2007, no accounts in the composite had a fixed annual brokerage charge.
3. No segments of other portfolio composites are included in the Growth 10 composite.
4. The most appropriate benchmark for the Growth 10 strategy is the Large Cap Growth Index, an unmanaged, capitalization-weighted index of primarily U.S. corporations. The Large Cap Growth Index is a combination of the S&P/BARRA Growth Index, the official benchmark until discontinued on December 31, 2005, and the successor S&P/Citigroup Growth Index. The Large Cap Growth Index includes price change and income, however, no expenses are involved. The S&P 500 Index was the benchmark prior to June 30, 2002.
5. Investment results have been calculated net of management fees, which were deducted from the results achieved by every account in the composite. The annual fee schedule is 1.0% of the first $1 million, 0.75% of the next $14 million, 0.65% of the next $35 million, and 0.50% of the next $50 million.
6. Investment results calculated net of management fees are appropriate for presentation or redistribution in all settings, but must be accompanied by this disclosure language.
7. All performance calculations are based upon trade-date accounting, and, except where otherwise noted, are associated with time periods ending December 31.
8. Performance is expressed in U.S. Dollars.
9. Annual composite dispersion is the asset-weighted standard deviation of gross investment returns.
10. Exchange-Traded Fund shares may be utilized in this strategy from time to time. No other derivatives and no leverage are employed.
11. Past performance is no guarantee of future results.
12. A complete list of Nottinghill performance composites and additional information regarding the calculation and reporting of Nottinghill performance are available upon request.

Investment Style Equities: Quantitative, disciplined
Large cap
Core

Representative
Securities:
Bank of America
ConAgra Foods
CONSOL Energy
DIRECTV
Nucor

Key Personnel:
Douglas G. McPeek
Managing Director
35 years' experience

W. Russ Stewart
Managing Director
36 years' experience

Jeffrey E. McPeek
Portfolio Manager
9 years’ experience

Martha J. Stenson
Director of Operations
23 years' experience

smart_quote.gif (2852 bytes)

We are always pleased to answer any questions you might have. Please contact us via our web form or call us at 513.624-3000 or 877.624-3001.