On January 1, 2008 Shenandoah launched an ongoing simulation of a new Large Cap Core strategy. The pages that follow provide back tested results for January 1997 through December 2007 and monthly simulated results beginning January 2008. The strategy results from a combined investment in Shenandoah's MegaCap and Midcap strategies. The combined strategy therefore utilizes the same stock selection and portfolio construction process as our active strategies. Please see the additional disclosures below.

The following summarizes the structure of the return series:

MegaCap Segment January 1998-December 2007: Back tested returns
Midcap Segment January 1998-December 2007: Back tested returns
MegaCap Segment January 2008 forward: Simulated returns
Midcap Segment January 2008 forward: Actual composite returns
Aggregation: Each month the MegaCap and Midcap returns series are combined in the same proportion as they existed in the Russell 1000 index universe at the beginning of the respective month.

The Shenandoah Large Cap Core Strategy is a U.S. equity strategy that is currently managed versus the Russell 1000^® index. The methodology can be applied to any reasonable U.S. equity index. The majority of value added by the strategy is from stock selection. The ideal stock has:

• Earnings growing faster than consensus expectations;
• Strong cash flow to support continued earnings growth;
• Corporate insiders are buying their own stock; and
• The stock is undervalued.

The additional links at the left will take you to the specific product information as follows:

Peer: Peer Comparison of other managers utilizing the same benchmark
Returns: Composite monthly returns
Characteristics: Characteristics of the resulting portfolio
Parameters: The restrictions and parameters applied in the investment process

Sources
Russell Top 200^®, Midcap^®, and 1000^® Indexes are registered trademarks of the Russell Investment Group
Plan Sponsor Network (PSN) is a product of Informa Investment Solutions
Global Industry Classification Standards (GICS^®) are a registered trademark of Standard & Poor's and MSCI BARRA
Portfolio characteristics compiled from data supplied by The Applied Finance Group, LTD. 

HYPOTHETICAL PERFORMANCE DISCLOSURE
Past Hypothetical Performance does not guarantee future actual results. Hypothetical results have many inherent limitations. No representation is being made that any account will or is likely to achieve returns similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular investment strategy.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical investment does not involve financial risk, and no hypothetical investment record can completely account for the impact of financial risk in actual investing. For example, the ability to withstand losses or to adhere to a particular investment strategy in spite of investment losses are material points which can also adversely affect actual investment results. There are numerous other factors related to the markets in general or to the implementation of any specific investment strategy which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual investment results.

Performance for periods greater than one year is annualized. Gross returns (including realized and unrealized capital gains, reinvestment of dividends and interest) are before fees and administrative expenses. Net returns reflect the return to investors after all fees and administrative expenses. Net returns are NOT provided here as they are a determined by the fee level, which is a function of the assets under management in the client's specific application. We will be happy to provide simulated net returns by applying a fee level based upon a client-specified asset level.