EQUITY PROGRAMS

 Large Cap Core
 Equity Income
 Mid Cap Growth
 Small/Mid Cap Core
 Small Cap Growth
 Value
 Balanced
 
 FIXED INCOME PROGRAMS
  Government Securities
  Intermediate Conservative
  High Quality Tax-Free
  Short Term Conservative
  Core Fixed
 
 Eagle Boston Investment
 Small Cap Core Value

PORTFOLIO PERFORMANCE

LC Value - Second quarter 2008
AC Value - Second quarter 2008

MANAGEMENT

Ed Cowart
Ed Cowart, CFA
Managing Director, Portfolio Manager




  • Joined Eagle in 1999
  • 36 years of experience as a portfolio manager and research director
  • A.B., Dartmouth
    College (1965)
  • Earned his Chartered Financial Analyst designation in 1977

VALUE
OPPORTUNITIES in UNDERVALUED COMPANIES

Many companies with promising fundamental outlooks remain relatively undervalued. The Eagle Value program offers investors the opportunity to purchase stock in such ventures that we feel are priced at a discount to the underlying value of the company.

The Eagle Value portfolio contains securities from a range of industries, each poised to spark investor interest. Catalysts might include accelerated earnings growth, new product lines or business ventures, restructuring efforts or cost reductions. Securities whose profitability mirrors economic cycles might be targeted as the economy emerges from a slowdown.

Eagle offers two Value programs: Large Cap Value and All Cap Value.


INVESTMENT PROCESS

Fundamental Research

  • Experienced management, well-defined
    company strategy, financial stability and positive industry outlook
  • Presence of a catalyst to unlock unrealized value
  • Poised to experience positive earnings growth in response to cyclical
    movements of the economy

Attractive Valuation Criteria

  • Low price-to-estimated earnings per share
  • Low price-to-book
  • Low price-to-cash flow
  • Low price-to-sales

Sell Discipline

  • Degeneration of valuation support resulting from price appreciation
  • Deterioration of company fundamentals
  • Occupation of too large a portion of total portfolio
  • Development of more attractive investment opportunity


Portfolio Characteristics | Large Cap Value
 
Typical market capitalization Benchmark Account minimum Typical turnover Typical number of holdings
greater than $5 billion Russell 1000 Value $100,000 35% to 40% 30 to 50


Performance1 | Large Cap Value (as of June 30, 2008)
Return to top
  — 1st Qtr — — 2nd Qtr — — 3rd Qtr — — 4th Qtr — — Annual — Russell
  Gross Net Gross Net Gross Net Gross Net Gross Net 1000 Value
2000 -1.93% -2.41% -2.79% -3.26% 7.99% 7.49% 5.05% 4.58% 8.15% 6.13% 7.01%
2001 -4.75% -5.17% 4.02% 3.56% -11.87% -12.24% 10.46% 10.00% -3.55% -5.20% -5.61%
2002 4.43% 3.97% -9.49% -9.93% -19.25% -19.70% 7.85% 7.36% -17.68% -19.27% -15.53%
2003 -4.45% -4.87% 12.29% 11.80% 1.29% 0.85% 12.92% 12.47% 22.72% 20.63% 30.04%
2004 2.28% 1.84% 2.31% 1.88% 1.72% 1.29% 9.19% 8.71% 16.22% 14.25% 16.49%
2005 1.32% 0.89% 1.08% 0.60% 6.23% 5.75% 1.09% 0.63% 9.98% 8.01% 7.06%
2006 4.73% 4.30% 1.93% 1.50% 3.77% 3.32% 6.34% 5.87% 17.80% 15.80% 22.21%
2007 1.49% 1.06% 6.91% 6.48% 1.16% 0.72% -3.68% -4.08% 5.72% 3.97% -0.17%
2008 -6.09% -6.49% -1.19% -1.61% — — — — -7.21% -7.99% -13.58%


COMPOUNDED, ANNUALIZED RATES of RETURN Net of fees (as of June 30, 2008)
 
— Years — — Percentage — — $100,000 Compounded —
One -11.14% $88,864
Three 5.62% $117,815
Five 9.15% $154,959
Seven 3.64% $128,443
10 3.02% $134,683




Portfolio Characteristics | All Cap Value
 
Typical market capitalization Benchmark Account minimum Typical turnover Typical number of holdings
Generally greater than $1 billion Russell 3000 Value $100,000 35% to 40% 30 to 50


Performance1 | All Cap Value (as of June 30, 2008)
 
  — 1st Qtr — — 2nd Qtr — — 3rd Qtr — — 4th Qtr — — Annual — Russell
  Gross Net Gross Net Gross Net Gross Net Gross Net 3000 Value
2000 1.47% 0.70% -5.11% -5.73% 11.74% 11.10% 4.50% 3.88% 12.43% 9.56% 8.04%
2001 -5.25% -5.80% 6.35% 5.75% -9.92% -10.44% 11.95% 11.34% 1.62% -0.67% -4.33%
2002 6.98% 6.60% -8.67% -9.01% -16.93% -17.30% 7.01% 6.63% -13.15% -14.47% -15.20%
2003 -3.12% -3.47% 13.23% 12.84% 2.47% 2.09% 11.76% 11.39% 25.62% 23.86% 31.13%
2004 6.00% 5.63% 2.68% 2.32% 1.60% 1.24% 9.16% 8.79% 20.17% 19.04% 16.94%
2005 -1.39% -1.74% 1.10% 0.75% 4.74% 4.40% 2.60% 2.21% 7.15% 5.64% 6.87%
2006 4.61% 4.27% 0.39% 0.02% 2.39% 2.00% 5.91% 5.43% 13.89% 12.15% 22.33%
2007 3.72% 3.33% 7.48% 7.11% -0.04% -0.40% -5.07% -5.46% 5.79% 4.22% -1.02%
2008 -4.11% -4.49% -3.96% -4.35% — — — — -7.91% -8.65% -13.27%


COMPOUNDED, ANNUALIZED RATES of RETURN Net of fees (as of June 30, 2008)
 
— Years — — Percentage — — $100,000 Compounded —
One -13.98% $86,022
Three 4.35% $113,640
Five 8.78% $152,286
Seven 5.08% $141,477




Risk Information

The risks associated with Value investing are based on the potential for a company's stock price to rise based upon anticipated changes in the market or within the company itself. However, if these changes either do not occur or do not have the expected impact, the company's stock price may suffer. Of course, other factors relating to a company or to general market conditions may also contribute to price declines. Value stocks have historically been sensitive to economic cycles and investor sentiment that can affect volatility and risk. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.

Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested.

Disclosures

(1) The calculation of the performance data includes reinvestment of all income and gains and is depicted on a time-weighted and size-weighted average for the entire period. Calculations include reinvestment of all income and gains. This performance is after the deduction of both management fees and transaction costs. Performance figures include all of Eagle’s retail managed accounts. All composite performance data through 2006 have been verified by an internationally recognized accounting firm. Performance data for the current year have not been audited and are subject to revision. No inference should be drawn by present or prospective clients that managed accounts will achieve similar investment performance in the future. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated above.

Performance data for the current year has not been audited and are subject to revision. Thus, the composite returns shown here may be revised and Eagle will publish any revised performance data.

Investing in equities may result in a loss of capital.

 
Copyright © 2008 by Eagle Asset Management, Inc.