THOMASPARTNERS APPROACH

ThomasPartners’ Strategies have three objectives

The first objective: Monthly Income

Wherever you are in life, it’s likely that one of your primary financial goals is to generate income—income that can help you live comfortably today or income that you can invest now and draw from when you retire. ThomasPartners Strategies seek to provide monthly income by investing in companies with predictable dividends and interest-paying fixed income investments.

The second objective: Income Growth

To assist in offsetting the impact of inflation, ThomasPartners Strategies strategically invest within and allocate across dividend-growth companies and fixed income investments in an effort to grow the portfolio’s income over time.

How are dividend-growing companies and fixed income investments chosen?

Each company is carefully analyzed. Its dividend-growth track record—and its ability to sustain that growth in the future—is considered, questioned, and evaluated. And, once selected, each company is continuously reevaluated. If a company fails to meet ThomasPartners’ high standards, it’s eliminated.

The fixed income objective is to seek reliable yields that appropriately compensate investors for the risks taken on their behalf, while dampening overall portfolio volatility. ThomasPartners accomplishes this with careful analysis of the major fixed income sectors and opportunistic purchases of fixed income investments with yield characteristics that the Portfolio Management Team believes fairly compensate investors for the risks to which they are exposed.

The third objective: Competitive Total Returns Over Time

Pursue the retirement you want with an investment strategy that’s built to prepare you for the years ahead. In addition to monthly income and income growth, the ThomasPartners Strategies seek to deliver competitive total returns over time through income generation and price appreciation. If you’re at a stage of life where you don’t need to withdraw your income, you can enjoy the power of compounding, since accumulated income can be reinvested in the ThomasPartners’ Strategies over time.

PORTFOLIO CONSTRUCTION AND MANAGEMENT

The construction process for our strategies is overseen by the ThomasPartners Portfolio Management Team, under the leadership of the Chief Investment Officer.

EQUITY

The equity allocation component consists of approximately 50 equities—all dividend-payers with an ability and expectation to grow their dividends. Most are large-cap U.S.-based common stocks, with lesser allocations to mid- and small-cap common stocks, international common stocks (headquartered outside the U.S. that trade in the form of American Depository Receipts (ADRs) and Ordinary Shares (ORDs)), and domestic MLPs or REITs. ETFs may also be used for indirect MLP exposure.

Stocks with a market capitalization generally above $1B are selected for client accounts pursuant to a four-step process.

Empirical research

Bottom-up fundamental analysis

Identify investment opportunity

Equity selection

FIXED INCOME

Our invests in fixed income investments provide an additional source of income that complements the company’s equity allocation and adds diversification benefits. The fixed income investment allocation utilizes high quality asset classes to manage both interest rate risk and credit risk.

The Fixed Income allocation is actively managed, with aggregate duration exposure ranging from around 3.5 years to around 6.5 years and aggregate credit quality ranging from A- to AAA, with positioning dependent on ThomasPartners’ economic outlook and fixed income asset price levels.

Proprietary Research

Assess Macro Economic Environment

Identify Target Fixed Income Positioning

Fixed Income Security Selection

A COMPELLING APPROACH TO INVESTING

An extensive bottom-up fundamental research process is used to evaluate every candidate for the portfolio, which are then strategically combined into a portfolio with an equal emphasis on monthly income, income growth and competitive total returns.