The Louisville Trust Company's value investment strategy is to search for undervalued securities with basic investment value and a reduced level of risk. We use technical indicators and fundamental analysis to find and identify industries that meet our value criteria. This approach consistently produces superior returns with less risk than other methods of investing.

Because we are long-term investors, we establish a price objective for each stock selection. A security will be sold when it has met its price objective, when the company fundamentals deteriorate, or when a better alternative is found.

Our equity process includes:

• An emphasis on seasoned, established companies that are available at a price discount from their book or takeover value, and significantly below previous highs
• Sound valuations with below average price-to-earnings or price-to-sales ratios
• Real revenue and earnings growth, positive cash flow developments, and dividend growth
• Recent signs of accumulation indicating renewed investor interest

Our investment managers' disciplined management process includes:

• Adhering to value style, given the advance of the market
• Identifying attractive investment themes
• Screening investment theme stock groups for value
• Making informed selections
• Monitoring the selections