Working from this primary objective, we seek to build capital by focusing on the real (after inflation) after-tax return from a combination of current income, growth of income, and appreciation. To accomplish this goal, we draw on our extensive experience in all types of economic environments and on our active, comprehensive research program. Further resources include relationships with leading investment research firms and the support of proprietary investment services, both printed and online.

           The generation of new ideas and the coordination of data on existing holdings is the basis of the research effort. To make the process more productive, we concentrate our time and talent on those specific areas where we believe we can add value.

         We are balanced portfolio managers, and our portfolios typically have some representation in common stocks, fixed income obligations, and short-term cash reserves. The specific allocation is determined and revised through ongoing review of a client’s objectives and circumstances as well as our assessment of the current investment climate.

         Our analysis and selection of fixed income investments focus on investment grade, short to intermediate term government, municipal, and corporate bonds depending on the after-tax yield for the specific client. We generally avoid long-term bonds because of their volatility and unsatisfactory returns when weighed against relative risk. For short-term cash reserves, we normally utilize Treasury bills and money market funds, although we may also consider commercial paper or certificates of deposit if advantageously priced.

         We invest in domestic exchange traded or over-the-counter stocks or warrants as well as in stocks of foreign issuers. We routinely focus on a universe of approximately 75-100 issues at any one time, relying on the personal resources of BB&T Asset Management Inc., Wall Street, industry sources, proprietary online information, direct contact with companies, and our own analysis in guiding our decisions. Our universe of stocks ranges from large, recognized firms to small and medium-sized growth oriented companies. We primarily utilize individual securities, although we do from time to time invest in mutual funds in order to obtain representation in particular areas of investment where we feel there are limitations posed by individual securities. For instance, when seeking participation in a specific country or geographic region, we might decide on a country or region-specific fund as the most attractive vehicle.

         Over long periods of time, equity investments have provided higher returns than fixed income securities. When chosen carefully, their inflation-adjusted returns from appreciation and dividends should provide the basis for steady increases in capital over market cycles. Long-term growth can be achieved, while investors enjoy and endure the ups and downs of the stock market, when accomplished through a balance of assets appropriate to the client’s circumstances.

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