FundQuest uses a proprietary system to screen and rank funds to narrow down the universe to a reasonable number of likely funds to be used in portfolios.

The data is compiled from well-known research agencies including Lipper, Morningstar, Micropal, and The Frank Russell Company. Each security is assigned a score and ranked according to FundQuest's proprietary scoring system which weights and then links the factors to determine an overall score for each security in the universe. Because each category evaluated has components that are weighted differently, the FundQuest system has built-in flexibility, allowing the investment team to weight these factors differently in order to over/underweight criteria that is most relevant for any given category.

Among the initial factors considered are:

• No-load funds with no redemption or transaction charges
  
• 1, 3, & 5-year performance relative to peer group average
  
• Expense ratio relative to peer group average
  
• Standard Deviation relative to peer group average

Additional criteria include:

• Cash position
  
• Top Ten Holdings
  
• Tax-efficiency rating
  
• Manager accessibility
  
• Assets under management
  
• Manager tenure and experience managing assets in the given category
• Performance in down markets (semi-variance versus peer group)
  
• 12-month yield
  
• Weighted-average maturity
  
• Sector weightings (max concentration)
  
• Medium Market Capitalization
  
• Style consistency
  
  Each category is reviewed and funds are eliminated based on concerns about any of the criteria.
  For example, manager tenure of less than 3 years or a maximum sector concentration of more than 40% would generally eliminate a fund from consideration.