STEP ONE:
STRATEGIC CONSULTING PROCESS

First, we determine your unique financial circumstances.

We review and analyze your unique investment and administrative goals, objectives and needs, your investment horizon and appetite for risk, in the context of a changing and complex tax, regulatory, and economic and financial environment. We also take special note of and accommodate any financial, regulatory, legal, or social constraints. This allows us to design a portfolio structure that uniquely fits your special circumstances.

The strategic consulting process includes, but is not limited to, an analysis of the:

1. Investment objectives and preferences;
2. Prudent risk parameters;
3. Asset allocation;
4. Legal and other constraints;
5. Net cash flow requirements;
6. Administration and custody arrangements;
7. Money managers’ performance;
8. Money managers’ investment process;
9. Fee structure

This strategic consulting process is critical. The information gathered at this step is used as the foundation for all subsequent decisions regarding the investment program.

STEP TWO:
DESIGN OPTIMAL PORTFOLIO

Second, we design an allocation plan that will achieve your financial goals.

Our asset optimization program is designed to provide an understanding of the trade-offs between investment risk and return. These simulations assist us in determining a set of optimal asset allocation strategies, which have the highest probability of meeting your needs.

Our asset allocation model includes a set of capital market assumptions characterizing the expected future market performance of the major asset classes. These capital markets expectations reflect a five-year outlook for the broad asset classes and include expected returns, risks, and the correlations between the asset classes. Asset mix variables specific to each sub-asset class are incorporated in the asset allocation model. These variables include: risk tolerance, asset class preference, time horizon, and expected return.

STEP THREE:
FORMULATION OF INVESMENT GUIDELINES AND OBJECTIVES —
INVESTMENT POLICY STATEMENT

Third, we prepare a written IPS that provides a framework to guide the investment process.

The Investment Policy Statement (IPS) is an invaluable strategic planning tool for sound investment management. We view the IPS as a working document, the contents of which will change in accordance with any changes made to the asset allocation variables described above. This document serves to clearly articulate the investment process and parameters for all concerned.

The completed IPS includes risk/reward characteristics for the investable assets, performance benchmarks, as well as control procedures and guidelines for the total portfolio.

STEP FOUR:
MANAGER SEARCH AND SELECTION

Fourth, we select 'best-of-class' managers for each asset class and investment style.

In order to maximize our objectivity and focus on your unique needs, we leverage the money management databases available to us through our affiliation with Zephyr Associates. Zephyr Associates is a global leader in the development of analytical software tools used to analyze investment managers, mutual funds, financial markets, and investment portfolios. Zephyr's extensive resources enable us to study the global breadth of money managers, focusing on the best specialists available in each asset class.

Our search process begins with a thorough screening process where we analyze each manager's ability to generate consistently superior returns relative to both peer group and benchmark indices. Equally important to us is that each manager is capable of producing excellent results not just when markets are performing well, but also when markets are not performing well.

The search process itself follows a formal multi-step process. When analyzing candidates for search purposes several critical factors are considered. Among these factors are:

Quantitative - manager style, assets under management, length of track record, fees, performance history, risk statistics, and correlation's; and

Qualitative - manager reputation, client base profile, geographic locations, personnel, management type (team vs. star system), client service/communication, publicity (positive or negative).

The result of this disciplined search process is a manageable number of candidates for each style category.

STEP FIVE:
MONITOR & SUPERVISE

Fifth, we maintain rigorous supervision to insure that your portfolio achieves its investment goals.

Our performance evaluation process seeks to measure the absolute and relative performance results of every investment manager. The objective of the process is to establish a reliable monitoring process through verification and documentation of performance results relative to benchmarks and guidelines.

We use both internal and external performance measurement capabilities to provide a comprehensive and informative evaluation of the total portfolio and individual portfolio managers on an ongoing basis. The organization and content of a performance measurement report enables you to determine "why" performance results were achieved, and to identify adjustments, which periodically become necessary to maintain performance and management risk. While the performance measurement is easy to understand, often the more important element is the interpretation and insights, which we gather from these statistics.

In summary, our investment management services include:

• A review of your current investment program;
• A comprehensive asset allocation analysis;
• A written Investment Policy Statement;
• Selection of appropriate Investment Managers;
• A review of your investment plan; and
• Performance monitoring.

Fees
Manchester Capital Management is only compensated on a percentage fee on assets basis, with the percentage varying depending on the size of assets.

We offer two service levels with differing fee charges:

Investment Management Services – Minimum $10 million in assets

Family Office Services – Minimum $25 million in assets