Our Clients Our clients are primarily individuals and families. They represent a broad spectrum of financial profiles, from those of modest means to the very wealthy. With all our clients, however, our goal remains the same: to develop investment strategies that help them meet their financial goals, no matter how cautious or aggressive their investment approach. Our philosophy demands that we know our clients well in order to contribute to their financial welfare. Our clients must work with us in devising their investment policies. We regard our clients as partners in our efforts to build their financial security. We believe this unique approach combines the best elements of both brokerage and advisory firms, allowing us to identify, and to meet, the specific needs of each client. It is an approach that utilizes a basic two-step process to tailor a specific custom investment strategy for each client. Our Investment Process Step 1 -- Investment Policy Through a series of initial consultations, we establish an investment policy best suited to the individual investor and his or her family. These consultations allow us the opportunity to learn a great deal about our clients' background, such as age, health, family situation and psychological approach to the world of investing. Once we assess these factors, we then begin to determine a reasonable allocation and distribution of the assets. Working as partners with our clients, we agree on an allocation of assets into the four risk-based categories of investments. These are: Group I - conservative fixed income investments; Group II - conservative common stocks; Group III - high- grade growth common stocks; and Group IV - aggressive stocks for appreciation. We then have a thorough mutual understanding of "risk versus reward" parameters for each of our clients. Step 2 -- Securities Selection Once the policy is established, we must then select appropriate securities to implement our plan. The security selection process results from analyzing research material from excellent outside sources, combined with our evaluation. Our firm has expertise in common stocks, municipal bonds, mutual funds, money market funds and in small company corporate finance services. Once the portfolio is established, we will continue to monitor any movement in various segments of the portfolio to ensure adherence to our objectives. We may, for example, rebalance an account after a substantial swing in the securities markets to ensure that our policy guidelines are adhered to, no matter what the direction of the swing. In our industry, commission income--from the buying and selling of securities-- normally has been the only compensation for most brokerage firms. In our view, the purchase or sale of securities is merely the last step in our total effort on the client's behalf. Moreover, we recognize that many of the problems associated with the securities industry stem from a transaction-based compensation system that has persuaded firms to become sales oriented rather than client service organizations. Hunter Associates overcomes this transaction bias and focuses on consistent financial advice that provides greater value to our clientele. Securities Selection -- The Philosophy Fixed Income Investments Philosophically, we believe that the fixed income section of a portfolio should emphasize safety of principal, with a secondary aim of generating reasonable income. Our basic desire to protect principal in the fixed income section (Group I) is three-fold. First, and most important, is our belief that this section of the portfolio should be stable. It is not the area in which to take risks. Second, for some clients, the revenues generated in this section of the portfolio represent a significant portion of their income. Finally, the funds protected in the fixed income section of the portfolio can be used, particularly by aggressive investors, to take advantage of declines in the stock market, when attractive common stocks are both appealing and available. Common Stocks At Hunter Associates, we classify our common stock selections into one of three groups - conservative common stocks, high-grade growth stocks and aggressive growth stocks. Stock selections are generally made to create long-term client ownership of superior companies, whether held as conservative or aggressive investments. In contrast to the fixed income portion of the portfolio, we believe that common stocks represent the best area in which to assume risk for incremental reward. We use a fundamental approach to common stock selection. We are not stock market forecasters. We are not traders and we do not believe we can forecast interest rates or the short-term stock market. Because our firm caters primarily to individual investors, we are not committed to buying sizable blocks of heavily traded issues. Instead, we frequently seek out small, sound companies that offer substantial appreciation opportunities. We regard our own small size as an asset that enables us to focus on the smaller companies that larger firms may be forced to overlook, an advantage particularly important for aggressive growth stock selection (Group IV). Investment Advisory Services In designing Hunter Associates, we felt that some of our clients and prospective clients would prefer an investment advisory relationship with our firm, rather than the historic brokerage relationship. There are three characteristics unique to an advisory relationship: 1. An investment adviser has a strong fiduciary relationship with the client. This fiduciary relationship mandates more frequent and intense qualitative and quantitative reporting responsibility from Hunter Associates. 2. An investment advisory relationship requires a contractual agreement with the client. 3. Advisory clients pay Hunter Associates a fee relative to the size of the portfolio while, at the same time, receiving deeply discounted commissions on all transactions occurring within their accounts. Our goal is to offer our clients the best of both the brokerage and investment advisory worlds, with a very affordable and competitive investment advisory fee. At the same time, our size allows us to individualize and optimize the effectiveness of our client service. If you would like to request information regarding Hunter Associates' investment advisory services, click here. Our People We employ a horizontal rather than vertical business structure, creating an environment that fosters effective problem-solving and open communication throughout the company. Our experience in the financial industry tells us that people reach their fullest potential when they feel a high degree of freedom, enjoy their physical surroundings, and work with other high-achieving professionals. A major aim of Hunter Associates is to create an environment in which our people enjoy coming to work, and accept and enjoy the challenges of their profession. Our people understand and are dedicated to our mission. Outside Services Our primary mission is to focus on portfolio performance by using the best resources available to us. As a matter of policy and in an effort to enhance the value of our services, Hunter Associates works extensively with highly specialized external consultants and advisors. We are particularly proud of our association with Pershing, LLC, as a "fully disclosed" correspondent. Pershing performs most of our execution, clearing and information management tasks and, in addition, makes available to Hunter Associates its first-class trading and operational support services. Many of our clients have their own lawyers, accountants and tax advisors with whom we share information in order to provide a better service. David W. Hunter David W. Hunter established Hunter Associates, inc. on July 1, 1992, after thirty-seven years in the securities industry. Mr. Hunter started his career in 1954 as a stock broker with McKelvy & Company. In 1960, he became a partner in the firm and managed the Underwriting, Research and Corporate Finance Departments until 1969. That year, McKelvy & Company merged with Kay Richards & Company to form Parker/Hunter Incorporated. Mr. Hunter served as Chairman and Chief Executive Officer of Parker/Hunter Incorporated from 1975 to 1984, and remained Chairman through 1989. He held the position of Chairman Emeritus from 1989 to July 1992. Mr. Hunter has written a basic book for investors, Never Out of Season. Mr. Hunter graduated from Amherst College in 1950 with a B.A. in Economics and received his M.B.A. from Harvard Business School in 1952. Some of his many accomplishments include serving as Chairman of the Board of Governors of the National Association of Securities Dealers, Inc., Member of the Board of Governors of the Chicago Stock Exchange and Chairman of the Board of the Securities Industry Association. Hunter Associates invites you to read David Hunter's book, Never Out of Season. If you would like more information on how to obtain a copy, please feel free to contact us by clicking here. Our Mission Statement Our primary goal is to help clients define their specific objectives and investment policies, and to select appropriate securities and strategies to meet these needs. Our secondary goal is to provide our associates with meaningful challenges, growth opportunities and a pleasant environment. Our mutual success will simply be a by-product of achieving these goals.