Brady
Investment
Counsel, LLC.

0S277 Kellar Square
Geneva, Illinois
60134-5308
Tel - 630.845.1125
Fax - 630.845.3397

Investment Strategies

Equity Strategy Overview
Core Growth Strategy
Focus Strategy
Equity Enhanced ETF Model

Core Strategy Overview

Objectives: The Core Strategy seeks long-term growth of invested capital. Income growth is a secondary objective.

Strategy: The Core Portfolio Strategy invests in a diversified portfolio of growing companies selling at a discount to our appraised value. Initial company selection screens are based on historic operating fundamentals. Each holding is expected to have substantial relative per share sales and earnings growth potential. In addition, each investment must fall within or below our estimated fair-value range as determined by our proprietary equity valuation model. We typically we hold between 50 and 60 different issues. The minimum initial position size is 1% at cost with the maximum being 5%. Maximum position size based on market value is 8% as long as valuation can be supported by fundamentals. We are long-term investors and believe in letting winners run. Annual portfolio turnover typically ranges between 20% and 40%. Turnover can be significantly greater during rebalance periods, which will occur as market conditions warrant.

The Core Strategy is Appropriate for: The Core Strategy is intended for institutions, foundations and individuals seeking to outperform the market through active portfolio management. The typical investor is risk tolerant and requires greater than 10 years of experience from their investment manager.

Core Strategy Top Holdings (12/31/07):

Also View Our:
Focus Strategy
Equity Enhanced ETF Model

Log into your account through
www.schwaballiance.com