Revealing Hidden Risks Through Our Wide Angle of Vision.
Looking at the whole portfolio from a wide perspective as done in the investment management program provided by Sterling means evaluating each opportunity for its effect on your whole portfolio, rather than just for its individual merits. In this manner, excess risk is exposed. The process calls for the conducting of asset allocation regularly on all your assets, regardless of their age. And long held assets should be dealt with as realistically as the most recent purchases in your portfolio.Once the excess risk is revealed in your portfolio, it will be possible to put a plan into effect that can remove it from your holdings. As a result, risk/reward ratios will improve. At Sterling, we have been able to help our clients diminish risk without reducing their rate of return. And, increase their returns without raising their risk, keeping our promise to make the whole portfolio work harder.

Increasing Your Range of Market Vision.
Yet another way that we make the whole portfolio work harder is by increasing the range of market vision. The investment universe today contains a greater diversity of asset classes than ever before--small capitalization stocks, medium cap, large cap, global competitors, interest sensitive, taxable and non-taxable bonds. Performance can be enhanced and risks controlled by the accurate evaluation of all assets. They can also be assisted by broader diversification and by continual asset re-allocation whenever a transaction or market change has a bearing on a client's individual investment objectives.

Managing Fixed Income Investments as Closely as Equities.
Close fixed income management is another way we work to create greater efficiencies in your whole portfolio. Changes in interest rates, credit quality, liquidity, sector appeal and debt structure can have an immediate impact on a bond's value. The traditional "laddered" approach to buying based on quality and maturity date analysis should be supplemented by active management based on sector, credit, yield curve, and liquidity issues. This approach helps to avoid losses and to ensure opportunity.

Superior Investment Performance.
The past few years have seen a strong run up in the stocks measured by the major indicators such as the Dow Jones Industrial Average and the Standard & Poor's 500 Index. In this environment, most professional money managers have been unsuccessful in beating the major indicators. Sterling is proud of the fact that since the inception of our model portfolios in October 1995, we have consistently been able to outperform these leading indicators. Specifics about our current performance are detailed in our Sterling Investment Performance Quarterly Update.

We Keep Our Clients by Serving Them Well.
Sterling is able to provide a one-on-one, person-to-person relationship to all its investment management clients at all times. The average tenure of our relationship officers at Sterling National Bank is 14 years.Our clients are primarily middle-market companies and high net-worth individuals, many of whom have had relationships with us for generations. Many of them are lawyers and accountants who appreciate the cut-through, non-bureaucratic service they receive from our relationship officers. Our Chairman has been with the bank for 48 years. We understand what it means to have a commitment to clients that extends across the generations. Many clients come to us through referrals by our long-standing clients. Recently, many new clients have switched to Sterling because of dissatisfaction with the treatment they received as a result of the latest round of mega-mergers.

What Makes Your Relationship With Sterling a Special One.
Sterling is a very special financial institution that stands out in its own way among the many giants in the financial capital of the world. Certainly, one deliverable that makes us unique is the quality of our personal service. We pledge to bring that same level of personal commitment to you. You can devote as little or as much of your time as you want to your investment portfolio. You can exercise complete control or you can partake in our discretionary management with reporting procedures that fit your individual needs. It's your decision. Your Investment Management Officer will be personally responsible for working closely with you to ensure that you receive the information and service you want and need in a timely fashion.