1.   SET A FIRM FOUNDATION WITH ASSET ALLOCATION

• Combine top-down, macroeconomics with bottom-up, underlying investment perspectives
• Build well-diversified asset allocation portfolios linked to investor goals
• Create boundaries for portfolios’ risk exposure and return potential
• Identify important market inflection points
• Systematically consider the risk arising from the sizing of active decisions
• Apply general investor risk preferences to all aspects of the investment process

2.   DIVERSIFY WISELY WITH ACTIVE PORTFOLIO DESIGN

• Take a multi-dimensional approach to portfolio construction, combining different asset classes, geographic regions, and investment styles
• Create portfolios designed to deliver consistent long-term results in line with investor goals

3.   SELECT INVESTMENTS AND EVALUATE LEADING MANAGERS

• Develop forward-looking expectations regarding execution in different economic environments
• Select investments and managers using a process that differentiates manager “skill” from “luck”
• Aim to have the best managers in the portfolios at all times
• Evaluate investments and managers using a common framework, within and across disciplines

4.   KEEP INVESTMENTS ON TRACK WITH ACTIVE PORTFOLIO CONSTRUCTION AND MANAGEMENT

• Select investments directly for our specialized mandates
• Use a value based approach to implement strategic fund portfolio-level changes more cost effectively
• Actively measure and allocate to each investment based on an allocation of risk
• Ensure consistency between investment styles and the assigned objectives

5.   ACTIVELY MANAGE RISK

• Operate risk management separate and independent from investment strategy
• Focus on common risks across and within asset classes