New Amsterdam Partners LLC

•	What is the right benchmark for the Large Cap product(s)? For the Mid Cap product(s)?
•	What is the Alpha objective of the Large Cap and/or Mid Cap portfolios?
•	What are the Tracking Error, Information Ratio, and Beta of the Large Cap & Mid Cap portfolios?
•	What is the smallest market cap you will buy in the portfolio(s)?
•	What is the largest market cap you will buy in the portfolio(s)?
•	How many securities does each analyst cover?
•	Why do your Large Cap & Mid Cap portfolios hold 40-45 stocks?
•	The expected return model is for what time period?
•	Does the model consider different economic sectors?
•	Do you have a back end model to control risk?
•	Do you use an optimizer?
•	Do you have a stop-loss rule?
•	What is your sell discipline?
•	At what market cap does a mid cap stock exit the portfolio?
•	What sectors does each analyst cover?
•	Does the team decide which stocks to buy/sell or the CIO?
•	How do you approach sector diversification?
•	How often is the model run?
•	How do your fundamental analysts forecast a company's cash flow?
•	What pick up in expected return do you look for when swapping out of one stock and into another?
•	What is your typical holding period for a stock / turnover?
•	How are portfolio characteristics (p/e, p/b, growth, roe) calculated?
•	Do you use Street estimates for forecast growth, return on equity, etc.?
•	How much cash is held in the portfolio?

» What is the right benchmark for the Large Cap product(s)? For the Mid Cap product(s)?
We do not declare a benchmark for either our Large Cap product(s) and Mid Cap product(s). Our large cap clients' benchmarks include the Russell 1000, Russell 1000 Growth, S&P 500, and S&P 500 Barra Growth Indexes. While our mid cap clients use the Russell MidCap, Russell MidCap Growth, S&P MidCap, and S&P MidCap Barra Growth Indexes.

» What is the Alpha objective of the Large Cap
and/or Mid Cap portfolios?
New Amsterdam Partners' performance objective for Large Cap and Mid Cap portfolios is to add 1.0 to 1.5% alpha over a full market cycle (3 to 5 years). Historically, we have achieved this objective.

» What are the Tracking Error, Information Ratio, and Beta of the Large Cap & Mid Cap portfolios?
New Amsterdam Partners' portfolios are actively managed. As such, our Large Cap and Mid Cap portfolios show a tracking error in the 5.0 to 8.0% range and an information ratio in the 0.3 to 0.7 range (over rolling five and ten-year periods). Our historical beta has remained relatively low: in the 0.8 to 1.0 range.

» What is the smallest market cap you will buy
in the portfolio(s)?
The smallest market cap we would buy in any portfolio is $1 billion ($200 million for our Small Cap Active Equity strategy).

» What is the largest market cap you will buy
in the portfolio(s)?
Our Mid Cap portfolios are cap-constrained; we will only consider buying companies with market caps less than $9 billion at the time of purchase.

» How many securities does each analyst cover?
As a group, our Investment Committee (comprised of thirteen members) covers about 150 securities: our Top 100 list (a result of our proprietary expected return model), including our current holdings, as well as certain securities on a "watch list" made up of stocks that have appeared on our Top 100 list in the past.

» Why do your Large Cap & Mid Cap portfolios
hold 40-45 stocks?
Modern Portfolio Theory tells us that a fully diversified portfolio can be constructed with as few as 30 stocks. On the other hand, our practical experience puts the number more realistically at 40 to 45 stocks. Our process allows us to focus on the highest expected return stocks - to own more than the effective minimum to properly diversify would reflect "name creep," and reduce the overall return delivered to our clients.

» The expected return model is for what time period?
The model gives expected return for the next twelve months.

» Does the model consider different economic sectors?
The model is run in two ways: once unconstrained and once with sector bands. The output of both model runs groups the companies by their sector. The unconstrained model run is free to select the top 100 names regardless of sectors. This tells us which sectors the model likes or dislikes, based on how many stocks it is picking up from each sector (i.e., sector weight). The second model run is constrained such that the sector weights (number of names in a sector) are at least 50%, and no more than 200%, of the weights in the index. These sector weight constraints are consistent with our portfolio building process.

» Do you have a back end model to control risk?
We monitor and control risk at each stage of our investment process and define risk not simply as a specific quantitative measure but also as methodology risk. We believe there is inherent risk in longstanding processes that are not back tested and carefully evaluated for enhancements.

Quantitative Research Risk Control
Our backtesting process is part of New Amsterdam Partners' investment technology diagnostics. The process tests the validity of our investment model and indicates possible areas for improvement in both the model and our investment philosophy.

Fundamental Research Risk Control
Another example of our risk control processes was the development of our Proprietary Investment Research Platform, designed to enhance the evaluation of stocks while systematically storing information to track every security we evaluate as a potential purchase. We built this database using techniques of "knowledge engineering" to systematize the fundamental analysis stage of our investment process and ensure consistent research quality. Our system allows us to see the full picture of the investment story, both fundamental and quantitative, of a company over time. Our proprietary platform captures company information and stock price versus price targets, as well as risk factors and themes within an industry. In this process we systematically identify the key risks for the companies we own and/or have researched. This has become an early warning system to help us detect problems with our holdings before their stock prices are adversely affected.

Portfolio Risk Control
During portfolio construction, we look at risk control in three areas: stock-specific risk, stock diversification, and sector diversification. We examine each of our risk exposures versus those of our benchmark to make sure that our portfolios do not contain any unintended bets. Additionally, one of the things we focus on during the fundamental research stage of our investment process is whether or not purchase candidates have similar risk exposures to current holdings; by identifying these characteristics, we can avoid unintended bets in our portfolio.

» Do you use an optimizer?
New Amsterdam Partners does not use an optimizer to structure or explicitly manage portfolios as we utilize a bottom-up stock selection process. However, we are concerned with both sector weightings and stock weightings within our portfolios, and place constraints around both. Additionally, while we do not utilize an optimizer to explicitly manage our portfolios, we do use optimization software to evaluate risk exposures. This allows us to understand and evaluate our risk exposures so that we do not have unintended bets within our portfolios.

» Do you have a stop-loss rule?
New Amsterdam Partners does not use a stop-loss rule in our investment process because just as there may be overshoots on the upside, there could also be overshoots on the downside. Rather than selling a security based purely on a downside overshoot, we may use the price drop as a buying opportunity if we believe the underlying fundamentals remain strong.

» What is your sell discipline?
Sell decisions are made on the recommendation of our Investment Committee; a stock will be sold: a) when our analyst's price target is hit and if there is no rationale to raise the price target; b) when a stock's expected return has dropped due to a deterioration of underlying fundamentals; or c) if another candidate offers a substantially higher pick-up in expected return after transaction costs. Our transaction cost hurdle requires a pick-up of at least 4% in expected return to justify a trade.

» At what market cap does a mid cap stock
exit the portfolio?
New Amsterdam Partners defines mid cap stocks as companies with market capitalizations between $1 billion and $9 billion. This cap restriction is placed on securities at the time of purchase. However, if the value of a stock appreciates so that its market cap exceeds $9 billion, we will not sell the position based on valuation alone, but rather on the determination of our Investment Committee. As a stock appreciates, we systematically reduce its portfolio position if its value reaches 5.0% of the portfolio's market value.

» What sectors does each analyst cover?
Portfolio management decisions are made on a team basis by our Investment Committee. Each member's individual responsibilities are broken down as follows:

» Does the team decide which stocks to buy/sell
or the CIO?
Our Investment Committee decides which stocks to buy and/or sell; decisions are discussed at our Investment Committee meetings, held twice a month.

» How do you approach sector diversification?
Our Large Cap and Mid Cap portfolios have approximately 40 to 45 stocks diversified across 19 economic sectors (we define our sectors using FactSet classifications). By investing across 19 sectors we seek to reduce the risk of overexposure to any single segment of the economy. For major sectors, we are never more than two times or less than one half the benchmark weighting. Weights for smaller sectors may fall outside this band at times but will not tilt the portfolio due to the relative size of our major sector weights.

» How often is the model run?
Our proprietary expected return model is run twice a month and coincides with an Investment Committee meeting. We may run the model at any other time as we feel necessary.

» How do your fundamental analysts forecast
a company's cash flow?
Our cash flow forecast is a distillation of all that we know about a given company, its industry, and the current and long-term macroeconomic outlook. To understand a company and its financial productivity requires a number of steps. First, we examine all publicly available data, including annual and quarterly reports, paying particular attention to how the company has performed in times of both economic expansion and recession. We also examine the balance sheet relative to the cash that will be required to finance both the anticipated growth of the firm as well as the economic depreciation of the firm's assets. Next, we speak with management about their track record, including their ability to grow the business both organically and through the selective use of acquisitions. Finally, we analyze the industry itself, trying to discern whether or not it is an inherently attractive (shareholder-value creating) industry or one with less favorable long-run return characteristics.

Once we have a good understanding of these factors, we prepare to forecast the company's annual cash flows. Our forecasts typically cover a whole business cycle, 7 to 10 years, and take into account what we know about how revenues and margins will be impacted by both a slowing and accelerating economy. We are conservative in our estimates and do not assume perpetual straight-line revenue growth; most businesses/industries demonstrate some form of cyclicality and we try to capture this in our forecasts.

» What pick up in expected return do you look for when swapping out of one stock and into another?
If we decide to swap one stock for another in the same or similar sector, we would only consider candidates that offer a 4% pick-up in expected return after transaction costs.

» What is your typical holding period for
a stock / turnover?
Turnover in our Large Cap & Mid Cap portfolios is relatively low - in the 35 to 50% range over a rolling 12-month period - resulting in a typical holding period of three to four years. This illustrates our conviction in what we buy and aligns the long-term outlook of our portfolios with that of our clients' investment horizons. A byproduct of this approach is a benefit to our tax-sensitive clients.

» How are portfolio characteristics (p/e, p/b,
growth, roe) calculated?
We calculate various characteristics for our composites, portfolios, and relevant indices as a portfolio risk control measure. The characteristics are in the areas of valuation, dividend yield, expected growth, total return, profitability, leverage, past performance, systematic risk, and market capitalization. The calculation of the characteristics is done using accounting data from Compustat and pricing data from IDC database. This whole process is automated using the Portfolio Analytics module in FactSet Data Systems. Portfolio characteristics are calculated as of market closing on each month-end.

» Do you use Street estimates for forecast growth,
return on equity, etc.?
We use Street estimates as a starting point. We then make a series of algorithmic adjustments to these estimates as they are inputted into our expected return model. These adjustments take into account an overestimation bias on the part of the Street as well as anomalous accounting. An important part of our process is to identify where the consensus earnings estimate is and how our view and insights differ - that is one way we add significant value. Over time, our backtesting shows our estimates to be more accurate than those of the Wall Street consensus.

» How much cash is held in the portfolio?
Our portfolios are fully invested; cash is held only as a residual to our process or to accommodate client distribution needs and is typically at 3% or less.