For investors seeking long-term capital growth in all areas of the market: small-cap, mid-cap, and large-cap stocks.

What is meant by Socially Responsible Investing (SRI)?

In terms of investing, Social Responsibility is generally defined as the principle that businesses should actively contribute to the welfare of society and not solely to maximizing their profits. SRI integrates personal values and related concerns about society with investment decisions. A Socially Responsible investor usually seeks companies that do not conflict with certain social priorities; his investing strategy is not based on financial objectives alone.

Setting the boundaries of the Socially Responsible Investing portfolio is a difficult task. The universe of social priorities guiding the Socially Responsible investor is limited only by each investor’s personal preferences.

KING provides our clients with the ability to specify their social priorities, creating an investment portfolio that reflects their societal standards. For our clients who want to align their investments with their own personal values, KING offers the concept of Defined Values Investing.

• What is Defined Values Investing?
• Achieving Defined Values and the rewards of investment performance.
• What are the standards of Defined Values Investing?
• Investments that reflect your values.
• The screening process.
  

As of June 30, 2008

The Socially Responsible Balanced Composite portfolio, regardless of asset size, includes restrictions based on socially responsible criteria. Such restrictions cover a large breadth of issues but commonly include one or more of the following: 1) no SIN stocks (alcohol, tobacco, and pornography); 2) no environmental polluters; 3) no companies making abortion-related products; 4) no defense-related stocks; or 5) no companies involved with animal testing.

What is Defined Values Investing?

KING’s Defined Values Investing (DVI) strategy recognizes that every investment transaction has social implications as well as financial ones. While traditional investing is aimed exclusively at maximizing financial value, Defined Values Investing takes into account both the financial and social bottom lines.

Defined Values Investing (DVI) attempts to reflect each client’s personal values in the way we invest their money. KING honors our clients’ commitment to their social priorities and values.

As a Defined Values Investing client, you allow KING to assume the full range of responsibilities required to maintain your investing guidelines, from proxy voting, to direct communication with management, to filing shareholder resolutions, to divestment.

Through our DVI portfolio investment services, we offer you the ability to access a portfolio manager to build a customized portfolio of individual stocks and bonds to meet your specific investment objectives.

We strive to provide our clients with strong performance returns while staying within the context of each investor’s individual investment profile. We are uncompromisingly committed only to our clients.

Achieving Defined Values and the Rewards of Investment Performance

Investors do not have to sacrifice their values to achieve competitive financial returns when choosing Defined Values Investing. KING understands that our clients want their investments to reflect and benefit their values, and we have the technology, experience, and resources to manage their portfolios accordingly.

Just as with our other portfolios, KING seeks long-term growth of capital consistent with reasonable risk to principal for our Defined Values Investors.

What are the Standards of Defined Values Investing?

One day, there might be a unified standard for DVI for all investment professionals, whatever their location in the world. However, standardization is problematic.

When looking into company practices on environmental issues, human rights, or employment issues, there is little in corporate governance that defines the boundaries of ethical standards and principles of advocacy for the investor. Shareholders have the civic responsibility to society to see to it that corporations exercise responsible management, behaving in a way that expresses their view of what society should be.

Techniques and criteria vary widely. Generally speaking, industry advisers are using three main strategies: screening, shareholder advocacy, and community investing to qualify the standards.

Investments that Reflect Your Values

A fundamental principal of investment stewardship today is the idea that your investment dollars can be a reflection of your personal values – removing your money from those businesses that are offensive to your values.

We specifically seek out companies that reflect your values, selecting companies based on your social and environmental preferences. We take care to be sure that your investments are aligned with your social conscience. After selecting companies with the strongest underlying financial fundamentals using KING’s Business Valuation Approach, we use several research services to identify corporations whose business activities and corporate culture represent your values.

The Screening Process

Our clients represent a broad range of social values. We use screening criteria to ensure our clients’ portfolios are consistent with their social values.

We work closely with each client to address his or her unique financial profile, taking into account current holdings, attitude toward risk, cash requirements, tax situation, retirement and estate plans, and other personal factors.

We offer a variety of screens to evaluate companies for shareholder advocacy designed to find securities of companies to reflect your values. Screening includes the following:

• Abortion
• Alcohol
• Big polluters
• Companies that support anti-family based lifestyles
• Gambling
• Gas
• Issues of corporate governance and executive pay
• Mining
• Oil
• Pornography
• Timber
• Tobacco
• Treatment of workers in global factories
• Unethical corporate behavior

The portfolio characteristics presented in the KING Socially Responsible Balanced Portfolio are representative of all of the portfolios managed in the socially responsible balanced style, and are not specific to any individual portfolio. Individual portfolios may vary.