EQUITY PROCESS 

Delta initiates positions based upon three factors - a company's value, its management, and its current equity price. Initially, we formulate a detailed analysis of a company's cash flow, business value, competitive advantages, and future earnings potential. Our understanding of a company is enhanced through discussions with management, market analysts, and competitors in order to determine management's commitment to shareholders. Our target is an out of favor Company selling at a significant discount to our targeted value. We seek to diversify our client's portfolios over 30-35 positions, with each position ranging from one to five percent of the total invested funds at the time of purchase. We consider selling a position when our target value has been realized and/or the fundamentals of a company have materially changed.

FIXED INCOME PROCESS

Delta's objective is to generate income with reduced risk based upon our client's desires. We will typically purchase investment grade or better bonds with an appropriate average maturity and relatively evenly spaced maturities. Portfolios are diversified by market sector, credit type, credit worthiness, and issuer. Tax considerations determine whether tax exempt or taxable bonds are purchased. Cash flows generated are either reinvested or provide funds for distribution to a client. In addition, we like to take advantage of special situations when discounts are present that may produce a higher yield for our clients.