How We Manage Money

1. Rodgers Capital Management
How we manage mutual funds

2. What Is Our Edge?
Objectivity – We are not brokers or money managers. We refer any
managed accounts to an affiliation. Our only incentive is to generate
good results.
Diversification – We believe in diversification to reduce asset class risk
but we also believe in selectively exploiting asset class opportunities.
Discipline – Our discipline is based on our decision rules and
fundamental analysis. This avoids bad decision making and emotionally
based decision errors.
All-Star Approach – Exceptionally in-depth research gives us access to
highly skilled managers.
Quality of Service – You tailor an investment plan to your needs.

3. Investment Philosophy
Access to intensive research and a disciplined process are critical to long-
term investment success.
Global diversification expands our opportunity set.
A long-term approach allows us to take advantage of mis-priced
investments.
Using mutual funds allows us to access some of the world’s premier
investment minds. No one organization has a monopoly on investment
talent.

4. Portfolio Management
Investment Strategy Consistent with Your Risk Profile
You’re in Charge – drive risk/return assessment
Threshold for Loss – Each portfolio has a one-year loss threshold.
Investment Policy – IPS outlines the agreed upon risk/return and
portfolio objectives
No Guarantees – No guarantee that risk thresholds can be avoided.
Risk Assessment

5. OUR APPROACH
Four Steps to the Discipline
 US Large Cap Stocks
 International Stocks
 US Small Cap Stocks
 US Bonds
 Analytics adjusting
 Various risk scenarios
Historical Data 
Common Sense 
Style 
Market-Cap 
Asset Class 
Risk thresholds 
Portfolio Allocation
Opportunistically Adjust“
Target Asset Allocation
Adjust Allocation Based on
Scenario Analysis
Implement Portfolio

6. Investment Process
Threshold for Loss
Each portfolio has a one-year loss threshold.
Periodic Use of Risk Scenarios
Different risk scenarios are identified and used to assess the potential
impact on each holding as well as the portfolio as a whole. If risk is in
excess of the threshold, the portfolio is adjusted.
No guarantees
No guarantee that risk thresholds can be avoided
Using Scenario Analysis for Risk Assessment

7. Investment Process
Step 4: Select Money Managers
Quantitative Review
 Manager Records
 Return vs. Peer Group
 Consistency
 Expenses
Available Universe
Quantitative Screens
In-Depth Due Diligence:
Questionnaires,
Phone Interviews, and
Site Visits
A Select Few Make the Final Cut:
Managers With A Sustainable Edge
Qualitative Review
 Disciplined Approach
 Obsessive in Seeking
an Edge
 Team Focus
 Stability & Culture of
Organization
 Quality Team
 Shareholder Orientation

8. Value Added Services
Strategies customized to meet each client’s goals and
objectives (Investment Policy Statement)
Frequent communication
Monthly Newsletters
Quarterly performance reports and portfolio appraisals
Bi-Weekly reports
Quarterly reviews