THE STATE OF CABOT

Robert T. LuttsPresident & Chief Investment Officer

“It is not the strongest of the species that survives, nor is it the most intelligent,

it is the one that is the most adaptable to change.”

– Charles Darwin

A CHANGING WORLD

Cabot’s Philosophy on Managing Our Business What This Means To You

Cabot’s Investment Philosophy Independent and Flexible

Cabot’s Wealth Management Philosophy Valuable Independent Advice

Growing Our Talent Base to Better Serve Our Clients Portfolio Management and Research Wealth Management

Global Focus Travel for Worldwide Research

OUTLINE

Managing Our Business

Key Philosophy – Our objectives are aligned with yours.

Managing Wealth – Our growth is aligned with yours.

Independent and far away from Wall Street – Our independent thinking is a benefit to you.

Keep It Simple – Use common sense in long-term planning. Avoid over-engineered plans.

Revise Strategies as Needed – Remain flexible.

Investment Philosophy Growth is Better than No Growth – Greater earnings

potential

Invest in Successful Companies – Avoid Problem Companies

Avoid Debt-Oriented Companies

Stay with Growth Trend for as Long as Possible

Recognize that Most Trends Last for Long Periods

Use a Loss Discipline – Key is to Have a Strategy

Use Multiple Asset Classes – Be Open to New Areas

Global Focus – Follow the Growth

Wealth Management Philosophy

Keep Advice Simple and Flexible

Avoid Complex Insurance Strategies – Insure only what is needed.

Insurance Salespeople Can Be Biased – Do not let them drive strategy.

Remain Independent – In 28 years, Cabot has never received insurance commissions or commissions to buy any investment product.

Avoid Complex Tax Strategies – Use a simple, flexible approach.

Cabot’s Talent Base Is Growing

Portfolio Management Team – Highly experienced and capable. (Technology, Telecom, Consumer, Emerging Markets, European Markets)

Wealth Management – Jim Gasparello, Greg Stevens, Tom Vautin, Steve Davis, and Kathy Mealey - Highly capable of developing solid wealth strategies.

Independent Thinking – Investment research and critical independent wealth management.

Reward Staff with Profits – 15% of Cabot profits go to staff 401K. Staff interest is aligned with that of clients.

CABOT’S GOALS

Continue to Place Clients’ Interest First – You are the reason we exist.

Continue Growing Investment and Wealth Management Abilities – We do this through conferences and education.

Independent Thinking – Investment research and critical independent wealth management.

Global Opportunities – Recognize the vast array of opportunities and harness these opportunities for clients.

QUESTIONS