First American Capital Management,Inc.

A Premier Investment Firm witha Tradition of Excellence

The mission of First American Capital Management

is to preserve capital and grow assets for our clients.

Through challenging economic cycles, we have

earned a reputation as a trusted financial steward for

institutions, foundations, and high net worth families

and individuals.

Our Mission

Our GoalThere is an upper tier of investors and investment

management whose focus is the patient, long-term

growth of assets. These are typically institutional

investors, foundations, endowments, and high net

worth individuals

with the wisdom,

persistence, and

vision to set goals

and stay the course.

Serving them are

investment advisors

with the knowledge,

discipline, and

systems to make

informed decisions, set judicious goals, and consistently

achieve strong returns against benchmarks.

First American Capital Management is privileged to

serve many top tier investors with equity portfolio

management, fixed income investments, and cash

management services. We are especially pleased that

you are considering First American Capital

Management in your current review, and we welcome

your vigorous evaluation. We look forward to the

opportunity to work on your behalf and to include you

in the circle of clients who have entrusted their invest-

ments to First American Capital Management.

A Premier Level of Management

Measuring Success

Historically, we have

consistently generated

greater returns for our

equity portfolios, fixed

income investments, and

cash management

accounts when measured

against the appropriate

benchmark. These

“excess” returns are the

best measure of our

performance.

Left to Right: Donald Kennedy, Chairman of the Board, The

First American Corporation; Mark Hoppe, President, First

American Capital Management; Robert Venable, Chief

Investment Officer, First American Capital Management

Measuring Success

Portfolio Managers and Analysts

Left to Right: Jason Nerio, Associate Portfolio Manager; Daniel Ast, CFA, Senior Portfolio Manager; Christopher Rogers, CFA, Senior Portfolio Manager;

James H. Rogers, CFA, Director of Fixed Income; Robert S. Venable, CFA, Chief Investment Officer; Minnie Giles, Portfolio Manager; David (D.K.) Willardson, CFA, Director of Equities;

Stephen Grimm, CFP, Senior Portfolio Manager; Yuka Marosek, CFA, Portfolio Manager/Senior Securities Analyst; Kevin Wilcox, CFA, Portfolio Manager/Securities Analyst

Note: Two-thirds of FACM portfolio managers and analysts are CFA® charterholders.*

Year after year, newly minted investment styles storm into the market and just as quickly depart — often leaving investor portfolios in disarray. First American CapitalManagement portfolio managers and analysts implement time and market tested methodologies designed to build portfolios and increase client assets.

Flavor ofthe Month

* CFA® is a trademark owned by the Association for Investment Management and Research.

Team ApproachThe strong returns First American Capital

Management has achieved demonstrates the rewards

of a carefully constructed investment process and its

vigorous implementation by a group of experienced

and talented people.

Our collegial system emphasizes teamwork and

pulls together the people and disciplines needed for

premier investment management. Some team mem-

bers are versed in economics and provide the macro-

economic viewpoint. Others study the policies of the

Federal Open Market Committee (FOMC), continual-

ly assessing its impact on financial markets. Our

experts in credit markets provide important insights

into the fundamental health of companies and indus-

tries. Our equity analysts focus on companies and sec-

tors with proven business models and valuations that

may not fully reflect that company’s true worth.

Contrarian viewpoints are always welcome and serve

to strengthen the decision making process.

Led by Chief Investment Officer Robert S. Venable,

this cadre of professionals provides the highest level

of investment excellence. Combining disciplined

processes, custom analytical tools, and instincts honed

over years of market cycles, the group strives to

outperform the S&P 500 benchmark year after year.

A Hierarchy of Equals

Institutional Services Team

From left: Michael Walker, Regional Director

Brey Jones, Institutional Services Associate

Anna Kjellgren, Client Services Associate

John Hauswirth, Director of Institutional Marketing

Charles Burgess, Regional Director

Zachary Carboni, Investment Associate

Kevin Maloney, Institutional Services

EquitiesOur equities strategy is based on the belief that large

capitalization equities, with their unique combination

of stability and liquidity, provide the single best vehicle

for asset growth.

Our objective is to actively manage large cap equity

portfolios and outperform the S&P 500 benchmark

over the long term.

With that foundation, First American Capital

Management has created a process to identify those

stocks that we believe provide the best opportunity

to outperform the benchmark over a three- to

five-year horizon.

This decision-making process utilizes both top-down

economic and bottom-up company specific analyses.

Top-Down Analysis

In our top-down analysis, we first review long-term

secular factors such as demographic trends, global

econometrics, and the political environment that may

influence the future relative performance of industry

sectors. We also consider cyclical factors that may

affect our interest rate and economic growth outlook.

This in-depth, top-down review is the primary deter-

minant of our allocations to the various economic

sectors represented in the portfolio. Using the sector

allocations of the S&P 500 as a starting point, we will

over- or under-weight sectors based on our analysis.

First American Capital Management’s equity portfolio

managers implement a disciplined process for identifying

and selecting individual securities that take into account

both economic and company-specific data.

Finding Opportunity

Large Cap Core Equity

Top-down economic analysis is used to determine

under- and over-weighting of sectors. Our bottom-up

process identifies the most promising individual companies

based on criteria such as market presence, management

quality, earnings, and revenue growth.

Individual Stock Analysis

We take a bottom-up approach when selecting

individual securities. Emphasizing a long-term invest-

ment approach, we choose proven companies that we

believe are good investments based on the overall

outlook for the firm. Each security is analyzed on

several fronts including products, quality of manage-

ment, market presence, earnings, revenue growth,

valuation, and other selected financial data. Our

portfolios are diversified — generally holding 50-60

securities that typically represent all major sectors

of the economy. Our universe is comprised of

U.S. stocks over $5 billion market capitalization

and ADRs of a few selected large multinational

corporations.

First American Capital Management’s proven

ability to add value through extensive research

and interpretation of fundamental and financial data

is a significant measure of the strength of our

investment process.

Well-defined guidelines

determine when an equity

holding will be considered

for sale. A mandatory

formal review is triggered

when a stock’s performance

varies from projection.

Holdings are continually

evaluated for possible sale

when unforeseen events

occur, such as earnings

surprises, valuation con-

cerns, or deterioration of

industry fundamentals.

Deciding When to Sell

Model Portfolio

Top-Down Sector Allocation

Bottom-Up Stock Selection

� Global Economy� Demographics� Political Climate

� FOMC Policy� Inflation� Cyclical Factors

� Revenue Growth� Earnings � Market Presence

� Products� Valuation� Management

Fixed IncomeAt some investment firms, fixed income takes

a back seat to equities. This is not the case at First

American Capital Management where our fixed

income team has earned a reputation for excellence

with solid performance and attentive customer service.

The hallmark of First American Capital

Management’s strategy is a disciplined approach that

enables us to consistently achieve strong results

against benchmarks while focusing on managing risk.

Risk management is accomplished by a team of

dedicated credit analysts who monitor the evolving

financial health of our investment-grade holdings in

light of current and forecasted economic conditions.

Independent professional analysis then enables the

First American Capital Management team to identify

and exploit market-pricing inefficiencies.

Finally, each portfolio is individually tailored to

meet specific client needs based on a detailed

analysis of the client’s financial position.

Fixed Income Programs are Designed to Preserve Capital and Produce IncomeRegardless of Economic Climate

Adding Value to Fixed Income Portfolios

All portfolio decisions begin with a businesscycle analysis. Here is how strategies canchange with business cycles.

Duration vs Yield CurveCycle Benchmark Strategy

Peak Shorter to No CurveNeutral Bias

Recession Longer BulletMaturities

Recovery Longer to No CurveNeutral Bias

Expansion Neutral to Barbellshorter Maturities

Institutional Liquidity Management

Entrusted with substantial liquid assets by clients,

First American’s Institutional Liquidity Group is led

by portfolio managers and traders who have in-depth

experience in the short end of the yield curve. Our

team approach and timely client reporting is designed

to provide clients with the most responsive service in

the business. All accounts are constructed with an

emphasis on safety, liquidity and competitive returns.

Short Duration

We define short duration as between one and three

years. We utilize a mix of investment grade securities

to achieve our client’s investments goals. Combined

with economic and business cycle analysis, we

manage asset mix, durations, and exploit yield-

advantaged sectors to enhance returns.

Intermediate Duration

Our intermediate core portfolio strategy seeks

maximum current income and price appreciation

with a duration of two to five years. All sectors of

the U.S. domestic bond market are utilized to add

value. We seek to outperform the stated benchmark

primarily through a top-down process including

duration management, yield curve analysis, and

sector rotation. Bottom-up analysis of credit quality

and volatility, plus cost efficient trading, adds

further value.

Our investment profes-

sionals have substantial

expertise in managing

both taxable and non-tax-

able portfolios, choosing

from the universe of

investment vehicles appro-

priate to each client’s spe-

cific needs. Our relation-

ship with a wide array of

brokers, dealers and banks

provides us with competi-

tive pricing and yields on a

wide variety of investment-

grade vehicles.

Planning An EffectiveFixed Income Strategy

Please visit The First AmericanCorporation on the web atwww.firstam.com

StrengthThe First American Corporation

First American Capital Management is backed

by the financial strength enjoyed by its parent

firm, The First American Corporation. Founded

more than a century ago, The First American

Corporation is ranked in the Fortune 500 and

Forbes 500 lists of largest corporations based on

sales. Approximately $3.75 billion in revenues has

secured First American’s position on these indices

of financial management success. The First

American Corporation, with its family of compa-

nies, has become the nation's leading, diversified

provider of business information and related

products and services. Its subsidiaries operate

within three complementary business segments:

title insurance and services, real estate informa-

tion and services, and consumer information and

services, the latter which includes First American

Capital Management, Inc. Today, The First

American Corporation has over 20,000 employees

in more than 1,100 offices in the United States

and abroad. The First American Corporation is

listed on the New York Stock Exchange and trades

under the symbol “FAF.”